Prices may actually fall
According to the latest Knight Frank Global House Price Index, prices fell by 5.2 percent in the three months leading up to September 2014, but are still up year-on-year. However, a dramatic plummet of prices looks unlikely. Masood Al Awar, CEO of Tasweek Real Estate Development and Marketing said in an interview with Arabian Business, ‘We know that every eight or seven years there are some disturbances in the market and nothing can climb so rapidly. I think 2015 will be the peak but if we sustain it, [growth] can be prolonged to avoid the downturn… avoid the pitfalls [of 2008].’
New Dubai remains popular but developments on the outskirts attract demand
Mainstream areas such as Dubai Marina remain popular among western expats but new housing developments in areas such as Dubai Sports City, Dubai Silicon Oasis and Jumeirah Village are seeing strong demand, and hence an increase in prices.
Dubai still remains cheaper than many global cities
Dubai is still an attractive location to purchase a luxury home. As Knight Frank points out, Dhs3.6million buys approximately 146 square metres of luxury living space in Dubai – around six and seven times more than in London and Hong Kong respectively.