Reports by Phidar Advisory which is based in Dubai have expressed that experts may be deciding too soon in terms of the residential property sector of Dubai since it has been estimated that the price decline will continue on its way down.
According to the latest report from the research conducted by the company, the property market will continue to experience a decrease when it comes to the costs of properties for rent as the price is getting steeper. Because of this, there is an expected price slump in the months to come.
According to Phidar Advisory’s managing director, Jesse Downs, there are already plans of house prices coming back as announce by the media but the research conducted by their company has shown that the decrease in rent continues and is expected to continue until the summertime.
Last May, the month on month has shown the rent to decline by around 1.3 per cent in comparison to the compounded decline which has a monthly average of only 0.3 per cent considering that the market was at its peak last 2014 on the same month. This is from the noted released by Phidar.
According to Ms Downs, the decline which happened in the first 18 months is due mainly to the strong dollar and this is why there is a direct impact on the demand for investments as well. She also explained further that what is happening now is a delayed impact which was caused by the decrease in the oil prices. It has also impacted the employment as well as the demographics of the country. Because of this, businesses are now having a difficult time to grow.
There is a weakening in the demand but the supply remains to be stable within the past few years. In fact, there are around 20,000 new houses that are entered in the real estate market every year. The rental properties may not be looking good for Dubai but the same thing cannot be said in property in Hua Hin as demand continues to rise.