Dubai residents opt for more sustainable homesby Jumana Abdel-Razzaq on Feb 16, 2017
Dubai residents will continue to opt for more environmentally-friendly and affordable property in the next couple of years to 2020, a new report by property consultant Cavendish Maxwell revealed.
According to the “Dubai Goes Green” report, as of December, prices in Dubai declined by over 15% on average since highs seen in Q2 2014.
Key contributing factors of the decline include increasing job redundancies, limited liquidity in the market due to rising costs and oversupply in the market.
This has seen more residents moving to more affordable and sustainable locations in new developments across Dubai Investments Park, Dubailand and Jumeirah Village Triangle.
Zarah Evans, Managing Partner of Exclusive Links Real Estate in Dubai, said: “As the consumer is becoming more environmentally responsible, projects and communities geared towards sustainability are becoming more popular and are in line with Dubai’s focus on creating a more green economy.”
The property consultant predicts a rise in prices during 2017 and particularly more towards 2020 in more affordable areas like Al Furjan, Discovery Gardens and Silicon Oasis, added Evans.
Manika Dhama, Senior Consultant at Cavendish Maxwell, said: "In the ﬁrst half of this year signiﬁcant supply is expected in areas such as Dubailand, Business Bay and Sports City and this will continue to put pressure on prices in coming months.
"While price declines have promoted increasing interest from ﬁrst time buyers, the deposit requirements and equity contribution on the overall purchase are still prohibitive for most,” she said.
Dhama added that improved activity from owner-occupiers is a sign of a maturing market and that growth in activity from this segment in Dubai residential property will be based on factors such as expat job growth and the “lending parameters that especially cater to them”.