What was the impact of Brexit on the Dubai estate market?
Even in June, when the sensational referendum concerning the Britain’s exit from the EU took place, it was already obvious, that it would not only affect Britain and the European Union, but many other countries as well. Dubai was also observing the “English intrigues” with interest and concern.
No wonder why: a vast fraction of investments into Dubai flow from London, and British investors have been holding the top positions of analytical rating charts for quite a time. For instance, in 2015 the English invested 1.9 billion pounds in Dubai’s real estate. Still, during the first days after the referendum no one could really tell if there would be any impact of Brexit on the Dubai estate market. A couple of days isn’t enough to spot any change, though the most circumspect players noticed some signals.
Even though the impact of Brexit on the Dubai estate market was not very significant, it certainly made British investors more cautious and thrifty.
Now this impact is definite, the analysts admit it as a fact, and draw their first conclusions. So how significant was the impact of Brexit on the Dubai estate market?
The investors are being cautious
The first data was reported by propertyfinder.ae. According to their statistics, these are the two main tendencies among the British real estate market players in Dubai:
- The English owners of estate in Dubai lower the prices of their property for a bit. It goes both for rental rates and purchase prices;
- Those investors who were ready to purchase estate are now holding back their money and hesitate to make deals.
“These are not just our observations, says Lukman Hajje. – In order to understand the impact of Brexit on the Dubai estate market, we interacted with a number of other agencies and gathered general statistics. It enabled us to estimate the intentions and the spirit of many investors nowadays, and it helped us to distinguish certain tendencies. These effects have been noted by all the players who work with British investors or estate owners”.
Is the impact of Brexit on the Dubai estate market ultimate, or there’s more to come?
As the analysts from propertyfinder.ae say, right after the results of the referendum were released, the web traffic from Great Britain decreased by 8%. Somehow it subsequently stabilized, but it’s still gradually decreasing. Seems like a long-term tendency, and there’s a big chance that during the next few months the activity of the British on the Dubai market will either go down, or remain stagnant.
How significant was the impact of Brexit on the Dubai estate market?
At the same time, the experts admit that Brexit hasn’t shown all its cards yet. Many analysts suggest being ready for various outcomes. Could be decrease of the capital flow into Dubai, or, on the contrary – a burst of interest for estate purchase from the English investors, seeking for a market to invest their reserve funds into. After all, the impact of Brexit on the Dubai estate market is not ultimate yet, and the echo of the referendum may be recurring in the Persian Gulf for quite a time.