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June 2, 2016 | 11:25 | Dubai
The residential market in the UAE is expected to soften over the second half of the year. The ‘2016 UAE Real Estate Mid-Market Review’ by Knight Frank said while it’s difficult to predict when the next growth cycle will be, it’s expected the residential market to level out by the end of 2016 before seeing gradual recovery in 2017. Against a backdrop of global and regional uncertainties, the real estate sector in the UAE witnessed sluggish growth during the first half of 2016. However Knight Frank’s outlook for the sector in the long-term remains positive on the back of the government’s commitment to infrastructure spending and development projects, stronger growth forecasts (IMF), and the UAE’s safe haven status making it a favourable destination to live in, invest and visit.
The residential market in Dubai maintained its stability in the year-to-April 2016, with the General REIDIN sale price index remaining relatively flat on a monthly basis. The prime market continued to outperform the market average. Encouragingly prices in the prime segment increased 2% on a quarterly basis between Q4 2015 and Q1 2016. In Abu Dhabi, sale prices remained relatively stable on the back of a shortage in quality residential supply, Knight Frank said.