19 September 2016

Dubai: The Nature of Dawn

Inflection points are strong indicator of change in the market cycles and sentiment. These points are usually associated with times when price movements are in flux; this can be witnessed in major real estate markets such as Dubai, Singapore and New York. In particular, when the month on month price changes indicated periods of price volatility that swung both ways, it heralded a change in the price paradigm of the market.

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The current state of the Dubai market is in flux implying that we have reached an inflection point. In the last 6 months of the Dubai price cycle, we have begun to witness greater volatility with green shoots starting to appear, indicating that a recovery is underway.

A comparison between the two cycle slopes in the Dubai market reveals that there was much steeper decline in the first cycle, which leads to a sharper incline. However, in the second cycle we witnessed a lower rate of decline, implying the next cycle will have a gradual rate of increase.

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