Is it safe to invest in Dubai real estate amid Saudi-Qatar rift?
The effects of Qatar’s economic-cutoff have started surfacing.
Economists and specialists already predicted that the effects will extend beyond oil prices. Talking specifically about Dubai, the stock market witnessed a 0.7% dip soon after the decision to cut off all trade ties with Qatar. The government officials must have seen this coming since UAE is a major trade partner and travel hub for Qatar in the region.
Dubai’s real estate market has felt the aftermath of the regional political turmoil as well. As the local government gave evacuation ultimatum to Qataris, the market has been flooded with ‘for sale’ properties. And the real estate agents in Dubai are up and ready to capitalize on this opportunity.
Clearly, the buyers have an upper hand and can exert a higher bargaining power; but this is neutralized by the fact that Qatari investors makeup a very small portion of Dubai’s real estate market.
This price decrease is on top of the the already declining property prices in Dubai. According to Gulf News, during the period November 2015 till April 2017 the “average rental prices dropped 21 per cent, while property sales prices fell 20 per cent.”
There are mixed opinions about the future prospects of Dubai’s real estate market. With multiple off-plan properties in the pipeline, experts predict further decline in the property prices. Others suggest that the decline will continue but at a slower pace.
It is a golden opportunity for local and expat buyers to jump in Dubai’s real estate market given the lower prices and greater number of options to choose from. But be ready to expect a slower procedure; because someone else (attorney) has to sign the deal on behalf of the Qatari seller who can no longer enter Dubai.
Sellers in United Kingdom can also benefit from the situation by targeting their marketing strategies towards Qatari buyers who have taken out their money from the Gulf and are looking for other investment options.
Contact SevenSkys for best property advice in the prevailing political scenario.