Negative perspective for Dubai real property market
Written on July 3, 2011 by George Geoghegan
There have been a whole lot of discussions for quite some time now about the downward trend of Dubai real estate market. Dubai’s property market started its boom from some seven years back and kept its upward trend when many huge projects completed. These huge projects brought hundreds and thousands of units in market which in result attracted investors from all over the world. But the supply of units continued which ultimately flooded the real estate market. The final outcome of these oversupplies collectively with the global recession brought the real estate prices incredibly down, which side by side also caused investors and other employers to flee off from Dubai. Unemployment also surged which further caused people to leave Dubai and many properties become vacant. As the whole economy of every society is inter linked with itself in such a complex way that the cause and effect reaction is multiplied.
Currently the prices in Dubai property market are low but it is expected that recovery process is soon going to start again as many projects to be launched in future have been stopped except for those with unique selling points. Besides that, to efficiently cope up with oversupply the Emirates and Dubai government is also expected to create more job opportunities which will increase the population. The increase in population will automatically reduce the number of vacant properties which will ultimately increase the property prices.
There are some negative perspectives of Dubai property market but in general it is not as bad as it was once during the previous years. Dubai rental rates and property prices have declined a lot but if one sees it in long term investment perspective then investment in Dubai real estate still has some great opportunities in it. In the period of 3 years the property will regain its lost place and prices will be sky rocketing. But if you are a small investor and in favors of short term investment then this market is not for you.
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