REIDIN, 16 February 2018
As Dubai housing stock continues to grow we have witnessed a greater demand in the off-plan market compared to ready. The below graph highlights the off-plan launches by
Given the outperformance of the off-plan market in most observed communities in 2017, the amount of monies that were allocated to the ready space was less than 1/4th of the overall monies invested. Predictably, this led to a widening of the gap between off plan and ready prices (a phenomena witnessed globally).
We opine that mean reversion will occur as investible monies start to rotate into the ready space, to a point where the price gap reaches mean historical levels. This implies an upward trend in the secondary market.
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