Dubai's property sector forecast to see slower growth in 2013
Experts believe that Dubai's residential property market will continue to experience an upturn over the next year, albeit at a slower pace than in 2012.
While property prices may continue to increase in the emirate during 2013, the rate of increase is expected to be more subdued in 2013. A new report issued by real estate investment and advisory firm Jones Lang Lasalle states that "the market will experience a broader based recovery, with all sectors seeing some pockets of rental growth in 2013". This is good news for less popular areas of Dubai.
Dubai' safe haven status, booming population growth, and improved property rental performance have helped foster the improved market sentiment, and with many real estate projects announced in the past six months, this increased confidence has become more pronounced, the report added. Experts believe that the emirates’ strong economic performance is anticipated to fuel a further influx of quality workforce over the next twelve months, helping to sustain demand for mid and high end residential units.
"Further analysis suggests Dubai has passed through the peak of its construction cycle, so increased demand will continue to reduce oversupply. A number of major projects have been announced in Dubai recently, but these will take some time to come to fruition."
Experts also believe that the long-awaited Real Estate Investor Protection Law, which is expected to be released early this year, could help to further solidify the sector's recovery by regulating the off-plan market.