Complex Made Simple

Keep an eye on affordable property-Expert

This year’s Cityscape Global Exhibition and Conference, to be held September 11-13, is forecast to be the largest yet. Being a meeting place  for all stakeholders in the industry and a confluence of opinions, ideas and opportunities, there are opportunities to gain a macro sense of industry direction and a micro understanding of the various elements that will shape the industry going forward.

Mohanad Alwadiya, CEO of Harbor Real Estate, Senior Instructor & Advisor at the Dubai Land Department says: “As a general theme for this year’s Cityscape, I will be advising most of my investors to look for value opportunities in the affordable housing segment, particularly in the Dubai South areas, as this segment in this location is likely to be the subject of some very attractive easy payment plans to further enhance affordability and, to some extent, mitigate risk.”

Affordable is low risk

Alwadiya adds that this segment has outperformed its more luxurious alternatives for some time now and has continues to show lots of potential, even through the recent cyclical correction.

He says affordable properties will continue to be in high demand as Dubai’s population growth gains momentum during a period of expected strong economic growth.

“The risks associated with investing in the affordable segments of the industry as opposed to the luxury segments are much lower.  Demand for this type of affordable accommodation will continue to grow as Dubai’s population swells in the run up to the Expo (2020),” notes Alwadiya.

Look at macro, micro

Alwadiya warns that although there is value investing in the affordable segment, “it doesn’t mean some interesting opportunities won’t appear in other segments as well.”

It’s important to understand what factors are going determine the potential of any investment. For property, these factors include everything from macro level influences such as global economic performance and policies, geopolitical issues, currency rates and oil prices to more regional or local factors such as industry supply/demand levels, consumer confidence, government policy and regulatory framework, industry cycles and liquidity in the marketplace.”