In the global macroeconomic picture, 2016 was largely seen as volatile. The world can’t wait to move on to the next. Nonetheless, having avoided a bubble in 2015 and getting past a slowdown last year, the UAE property sector has done comparatively well. Many new landmark projects have been announced and the newly launched Dubai Water Canal is emerging as a major talking point, ending the year on a happy note. Analysts are now cautiously dipping their toes into optimism, suggesting the property market is poised to recover next year. However, global headwinds may affect Dubai as many markets battle uncertainty.
Dima Isshak, head of research and advisory at Chestertons, calls this a period of “correction and normalisation” following a series of global and regional events in the last couple of years. “Has the market bottomed out? The answer is not yet clear,” she says. “The reason is that real estate is not immune to external factors, whether geopolitical or economic.”
A report by Cluttons states that with property values expected to stabilise towards the end of next year, the real-estate market will continue to receive a boost from infrastructure projects linked to the World Expo in 2020 and other mega developments.