Khaleej Times

Lynnette Abad, director of data and research at Property Finder Group, cautions and says there was a 27.7 per cent decrease in off-plan transactions last year could be due to the fact that the global market is in a recessionary phase which could affect the amount of investment that is attracted locally. Additionally, developers added 29,947 new residential units to the market last year, which could affect prices. While the average gross yield for property in Dubai is still much higher than most other countries in the world, investors are looking for less risk right now.

Abad opines that Property Finder’s research accounted for just under 200,000 residential units, an average of 39,945 units per year for expected supply from 2019 through 2023. With lower demand to match that, prices will ease further. However, decreasing inflation is something attractive for both residents and potential residents. While investors will have to grapple with lower returns, a continued correction in inflated property prices will help to stabilise the market and allow for maturity.