The Dubai Real Estate Market Overview
The Dubai Real Estate Market Overview
Dubai real estate is something everyone has kept a keen eye on for the past five years. Since 2001, the Dubai property market has grown in unprecedented numbers, but the future seems somewhat bleak for investors in this once highly profitable economic sector. The global financial crisis was delayed in its arrival in Dubai, but it managed to creep up nevertheless and in October 2008, the Dubai real estate market began plummeting right off its short-lived utopia.
While many real estate developers began showing lesser profit margins since early 2008, Dubai was seen as a fairly stable market for real estate investments. The truth hit too hard,but amazingly, the developers and investors are back on their feet, recovering from major losses and heading for the great win, despite the gloomy worldwide economic outlook. Inflation has taken its toll on a variety of development projects, making it harder to complete projects on time. But, government-funded Dubai real estate developers are continuing with mega developments, which contributes to some ease in the overall market.
Dubai Silicon Oasis
It’s not all gloom though, because Dubai is known for it’s grand scale developments funded by both local and foreign entrepreneurs. Major developments such as the Palm Deira, Burj Dubai, Burj Dubai Downtown, Dubai Silicon Oasis, Dubai Marina and other projects are still running smoothly, with more coming up over the past year or so. Official authorities such as the Real Estate Regulatory Agency (newly established) and Dubai Land Department are working together to curb speculation-related price inflation in the market.
Dubai Marina by Night
New laws have been introduced to protect both investors and developers. Mortgage lending and borrowing is now strictly regulated and off-plan sales (selling property based on just the architectural designs) are prohibited. A Dubai real estate sector correction was long overdue and with these steps, things will be better by mid 2009. While foreign investors are a little apprehensive about investing their money in anything these days, fueled by local and regional entrepreneur wealth, the Dubai property market is still ahead of many worldwide, rivalling Singapore and Hong Kong.
