With Dubai running a series of mega projects, the emirate's property sector is projected to see a ramp up in 2018, thanks to a growing demand for new apartments ahead of Expo 2020, said an expert.

The three-year supply pipeline in Dubai's property sector is growing at a compound annual growth rate (CAGR) of five per cent compared to demand growth of 5.6 per cent CAGR, stated Phidar Advisory in its residential research note for the emirate.

The same study says that the five-year supply pipeline in Dubai is growing at 3.6 percent CAGR compared to demand growth of 6.5 per cent CAGR.

Hafeez Abdullah, the chairman of ‘The H Holding Enterprise’ said while quoting the report: "We can see a different investment cycle in the Dubai realty market. With the mega projects planned, the supply is still seen to continue to grow, however there are new trends that have led to changes in the potential buyers’ category."

“There are first-time buyers flooding the market, and there is a greater supply of units targeted at middle-income buyers. There is a change taking place in the market, and the coming two years will identify the way forward until 2020, he pointed out.

Phidar Advisory's Q4 Dubai residential research note said apartment sales prices declined by 12.7 per cent during 2015, while lease rates decreased by 1.9 per cent.

“This decline is likely to persist throughout 2016, and most likely into 2017. It gives an opportunity for home buyers to benefit from the market situation, not only to own an apartment, but to trade as well,” noted Abdullah.

Phidar has projected that the sale price decline would continue, likely through 2017, driven by the strength of the US dollar, low oil prices and impact on regional capital flows, in addition to other factors.

“Our real-estate arm Omega Real Estate is involved in multi-category projects across Dubai. We have sensed changes in the market, but are still registering growing demand. The projects planned for 2016 are likely to register higher revenues compared to 2015,” remarked Abdullah.

"Omega has marked a remarkable year of investments. According to Abdullah, the company will follow the same strategy for 2016," he added.-TradeArabia News Service