Complex Made Simple

Why ‘now is the ideal time to invest in Dubai’s real estate sector’

After suffering over the past few years due to an increase in property prices, Dubai’s real estate sector
looks set to enjoy a boom time once again in the next few years.

Leading independent financial advisory firm Holborn Assets believes there is light at the end of the tunnel.

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“Now is the ideal time to invest in Dubai’s real estate sector,” Holborn Assets adds.

Let’s invest in Dubai

Joanne Phillips, General Manager of the Mortgage Division at Holborn Assets, says that the main
reason behind these potential investments is property prices dropping, which can lure potential buyers and

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“The continuing lack of taxes, specifically related to capital gains, property appreciation, salaries and
rental yields mean there is potential for strong returns on your investment,” Phillips said.

S&P Global Ratings analysts say that Dubai’s real estate prices could decline by 10 to 15 percent over the
next two years, hit by new supply, geopolitical risks and the introduction of value-added- tax in the UAE.

According to Philips and her team of experts, the tourism sector is the one to witness the most investors,
especially Jumeirah Village Circle and Dubai South.

“These recorded the highest number of off-plan transactions last year and combine growth potential with
solid returns,” they said.

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What does 2020 hold for the real estate?

According to Reuters’s Sapna Jagtiani, S&P’s credit analyst for corporate and real estate ratings, the
prices in Dubai won’t stabilize before 2020.

“Dubai’s Expo 2020 could benefit the property market due to the potential increase in economic activity
on the back of the expected arrival of 25 million visitors and new residents,” S&P adds.

Phillips explained that “it is important to note that predictions that the market is set to be flooded with
more than 120,000 new properties ahead of Expo 2020 should be calmed by the likelihood that not all
will be finished on schedule.”

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“This means any disturbance to the sector is unlikely to be felt for some time yet, so now is a good time
for first-time buyers/investors to take their first steps on the property ladder,” she concludes.