Dubai; There is further evidence that the once pace-setting growth in Dubai’s property values has settled down to a more sedate rate. In the latest Knight Frank findings on property value gains for major realty investment destinations, Dubai has slipped to 39th spot – this after being at the very top of these rankings or in the top 10 for the better part of last year, causing real concerns that it could end up overheating the market.
Based on these projections, property values in Dubai slipped 6.2 per cent in the second half of 2014, while in the 12-month stretch ending Q4-2014, the value gains were a marginal 0.8 per cent. The likes of Hong Kong (placed 4th), the UK (9th), India (16) and the US (25) were well ahead in comparison. The three destinations with the sharpest increases year-on-year were Ireland, Turkey and Kazakhstan.
“What Dubai’s property market will experience is more in the nature of a slowdown caused by external factors rather than a full-blown correction,” said Khalid Bin Kalban, CEO of Dubai Investments. “And once recovery returns, it will be led by affordable housing (projects), which will give the market greater depth.”