There are now clear indicators in Dubai that the government is keeping a hold on the property market’s excesses – and it’s about time. We’ve long seen the industry to be high-risk. The business is guided by an uncommon range of variables, and it isn’t necessarily the most straightforward way to Dubai Investment Real Estate.
The vast amount of construction there undoubtedly poses fears about oversupply, but demand seems to have outstripped supply so far.
In 2007, price growth in some areas of Dubai was estimated to have been an almost incredible 79 percent, on top of already amazing growth figures in previous years. In 2008, fast growth is projected to persist.
Now, in mid-2008, the government is stepping in to control Off Plan Properties in Dubai, mortgages, and a slew of other market-cooling initiatives. These are more than likely to complete the mission at hand.
The housing market has seemed to defy gravity, just like some of the buildings in Dubai. With high rates and increased government interference, I’d be far more reluctant to invest in Dubai than I have been in recent years. It remains to be seen where the Dubai real estate market will go next, and whether the Dubai government will really turn a patch of desert into one of the world’s true commercial and financial centres using oil capital.
Overall, I would stop investing in Dubai since high returns can be earned elsewhere at a lower cost.
UNITS OF LOWER QUALITY SUFFER DUBAI IS FACING A REAL ESTATE CORRECTION.
There is no question that the global economic downturn has ushered in a new age in the UAE’s property industry.
People are less discerning about the quality of what they are purchasing in a thriving Dubai Investment Real Estate, according to the wise words of Jones Laing LaSalle’s Regional Managing Director, but as the market shrinks, there is a “flight to quality.” This remark was made a year ago, and how prophetic these words were in light of the subsequent Dubai real estate market correction.
The Advisory Group has also supported this argument, suggesting that the region’s real estate industry would re-adjust to become a market guided by demand, with desire and buyer desires deciding consumer values rather than greed from unreasonable speculators.
In this basis, even as most real estate properties are expected to see price drops in 2009, developers who deliver on their promises will be compensated, although lower-quality units will see the steepest price reductions. Leading real estate consulting companies estimate that selling rates will plunge on average by 20% for apartments and 35% for offices. Prices for villas, on the other hand, are expected to remain relatively stable.
Increased liquidity and easily available credit will be crucial factors deciding if and when the region’s property market will be back on the ‘path to recovery,’ due to stagnant income levels in Dubai, fueled by a struggling economy.
Maintenance costs are a real expense to owners, and one that many consumers have overlooked in recent years due to the frenzied buying frenzy. The ‘double-whammy’ for buyers of lower-quality units is that repair expenses and other secret expenses will accumulate when the general areas require regular upkeep and replacements.
The higher-quality units, which are typically sold by higher-quality salespeople who take a more practical attitude, would, on the other hand, be more likely to remain under the forecasted maintenance fee figures.
The Arabian Ranches is a real-life example of genuine consistency winning out. Prices skyrocketed as the early stages were completed. This was due to the fact that customers could see, touch, and physically feel the quality of the villas, rather than just the supply/demand equation. When buyers contrasted the quality of the property to that of other “ready properties,” they were more likely to pay a premium price than for poorer quality. When one realises that developers were paying comparable Off Plan Properties in Dubai rates for other villa ventures at the same time as the Arabian Ranches project was an off-plan venture, this was a very telling period.
In conclusion, this real estate downturn has shown that an investor serious about making a long-term investment that can tolerate high and low points in the global economy cannot compromise on one main investment criterion consistency.
WHY SHOULD YOU BUY REAL ESTATE IN DUBAI?
Property in Dubai has attracted buyers because of the off-the-plan deals offered by developers working on various Dubai projects. The allure of low-cost sophisticated living, a tax-free climate, the prospect of positive capital growth, and the opportunity to be a part of the world’s fastest-growing city make Dubai a perfect place to Dubai Investment Real Estate.
In recent years, Dubai has been a desirable market for luxury real estate. It is the second most populous and largest of the United Arab Emirates. The Palm Islands, Dubai Waterfront, The World, The Burj Dubai Complex, Business Bay, and Dubai Marina are just a few of the real estate developments that have sprung up as a result of the huge development.
Locals sometimes overlook how lucky they are, as many aspects of life in Dubai are still very affordable. Because of the low cost of labour in Dubai, you can get home assistance, landscaping, interior design projects, maintenance, and repair for a fraction of the cost. Furthermore, there are currently no taxes levied against landowners. Despite the fact that community service fees may apply, you can get lawn upkeep, trash service, 24-hour security, and other community amenities for just over $100. This is a fantastic deal for a better standard of living.
The majority of areas in Dubai have no traffic issues, and there are many nice neighbourhoods and exciting facilities nearby. What else do you have if those don’t sound appealing? In short, when you buy Off Plan Properties in Dubai, you get a pretty decent life at a very low cost.