Property Outlook for 2018 Looking Strong

December 17, 2017
Written by Arpan Ghosh
According to the latest report by property consultants Knight Frank, Dubai’s property market is expected to grow in 2018, albeit modestly.
 
When it comes to the most prime Dubai apartments, villas and penthouses, a 1 percent price increase is expected by the year-end. Preparations for Expo 2020 will be a major factor in the market upturn, the research states. Increased government spending and new initiatives are expected to usher in more employment, which in turn will lead to increased demand in residential real estate.
 
“Dubai’s prime locations remain a great choice for investors and end-users alike,” says Andrew Cummings, Managing Director of Luxuryproperty.com. “With Expo 2020 drawing ever nearer, major developers are continuing to expand the property landscape, providing more options for discerning buyers.”
 
Of the 13 cities examined in the report, Vancouver is expected to have the softest year, while Paris has emerged as a market frontrunner with an expected 9 percent increase in residential prices. It’s good news for the French capital, which hasn’t seen significant growth in quite some time. An overall positive outlook for the Eurozone market has turned the attention of global investors back to Paris, particularly those form the Middle East, the US and the rest of Europe.
 
Other strong markets include Hong Kong, which is expected to lead the Asian market with a strong demand from mainland China and a projected 7 percent increase; Singapore, with a forecasted growth of 5 percent; and Geneva at 3 percent.
 
Switzerland has long been a difficult prospect for property buyers because of the extensive bureaucracy involved. Given the high levels of security and privacy, however, not to mention some of the best educational institutions in the world, it is an increasingly attractive option for affluent families.
 
In the North American market, Los Angeles could look at increases as high as 3 percent but the East Coast will likely continue to struggle with excess inventory, resulting in a sluggish 0.5 percent price rise. London’s outlook for 2018 is largely the same, with an expected 0.5 percent increase.