Dubai’s residential real estate market has completed an entire cycle of decline, recovery and decline in the last 10 years, according to a new report from UAE property services firm Core Savills.

As other cities continue to gradually recover from the effects of the global financial crisis, Dubai is in a “unique” position, having swiftly recovered between 2011 and 2014, before declining again over the course of 2015, 2016 and 2017.

Core Savills, in its report 'Impacts: the future of global real estate', attributes Dubai’s distinct rental wave to significant fiscal stimulus from the government which kick-started growth, fuelled job creation and drove up demand for rental property, as well as the subsequent decrease in oil prices which results in job losses and contraction of domestic demand.

“Given that Dubai continues to be a fast-growing economy, largely reliant on expatriate tenant demand that has historically been responsive to Dubai’s economic fluctuations, the speed with which the city traversed its rental cycle is not surprising,” said Core Savills CEO David Godchaux.

“As the UAE sees further economic diversification and private sector-led growth, Dubai’s rental cycle is likely to decelerate and lengthen.”