What does 2015 hold for the Dubai Real Estate Market?
Another year gone, but what does 2015 hold for the Dubai Property Market?
A Maturing Market
Dubai to follow international standards set by New York, London and Tokyo.
Increased regulation of the real estate market is added much need stability to the market. Limit the effects speculators and unsavoury brokers that created the property boom and bust in 2008.
At a Cityscape 2014 seminar, Marwan bin Ghalita, CEO of Real Estate Regulatory Agency (RERA), stated that four new measures to control Dubai real estate companies and Dubai real estate agents will be implemented in 2015.
The four new regulations that will come into force starting in 2015 are:
- The passing marks for the mandatory test for renewal of a real estate agent broker’s license will be increased from 75 per cent to 85 per cent
- Broker cards will be eliminated, but broker registration will be linked with Emirates ID
- Brokerage start-ups will be allowed only four broker visas to start with and any increase will depend on their firm performance
- Brokers, who fail to do any transaction for six months to 12 months, will have their registration cancelled
Mid range “suburbs” to grow, demand driven by end users.
Higher rentals and more favourable payment plans have had people looking to newer areas of Dubai for places to live. These alternative communities only 15 minutes away from the Sheikh Zayed Road, existing amenities and much more affordable rents and payment plans will become increasingly popular. Creating attractive suburban areas, close to all the “action”, yet within the budget of the average working resident.
Areas to watch: Jumeirah Village Circle (JVC), Dubai Silicon Oasis (DSO), Dubai Sports City
The steady market prices will attract investments.
As the world worries about Oil prices and regional conflicts, the stability seen in Dubai and the UAE and its diversified economy will continue to attract investment. This continued vision for diversification of the UAE’s economy, and strong population and tourism growth will continue to see Dubai as the hub of commerce in the MENA region.
With increased stability in the real estate markets, many will see the opportunity to move there capital into real estate. Especially into the more emerging areas which are receiving healthy rental yields and capital growth.
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