Impact of increasing employment in Dubai on its real estate sector
Written on June 22, 2011 by George Geoghegan
When global recession hit Dubai real estate, many companies and businesses operating in Emirates planned out downsizing and began to letting go of some of their weakest employees. As the UAE is a mixed culture city where people from different races come to make their livelihood, so when they lost their jobs they went back to their native countries to replace their old employments. As a result many people previously living in furnished apartments and villas in the UAE left them deserted. This resulted in a lot of vacant residential places in the UAE.
On the other hand, the UAE developers and real estate agents were finding lucrative returns they thought the same would happen in future. They kept on forcing new housing units into the market. As a result the UAE real estate sector faced oversupply in housing units and very low demand of them in the market. This is the root from where distressed condition of Dubai properties was first stared.
Government of the UAE knowing well the root, cause is trying its hard to increase employment levels in the country. Many new projects are in the pipeline which will generate employment opportunities for the people. The UAE government is also attracting foreign investment. In this regard, Qatar has planned out to invest in Dubai. This foreign investment is expected to generate employment opportunities for the world wide people.
These increasing employment opportunities are deriving the demand of the UAE properties up. This increasing demand is matching with the supply and is eliminating the pressure of oversupply from UAE real estate sector. Property prices have started stabilizing and a point will come when the prices will start to recover and will gain a rebound again.
As property prices and Dubai rental prices are at its bottom in the UAE right now, it is a very good opportunity for the worldwide investors to invest in it before the prices will again start to pick up. Prices of the UAE properties touching at the bottom and new employment opportunities is a complete package for the middle class people around the globe.
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