Many things look good in Dubai – at least, according to tourist statistics. Dubai is the one of the most visited cities in the world. As one of the seven United Arab Emirates (UAE), Dubai is expecting to accommodate 15 million tourists by 2015.
Looking Good
Everything looked promising today as Cityscape Global 2010 (the world’s largest business-to-business real estate investment and development event) opened in Dubai. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, presided over the opening ceremony of Cityscape Global at the Dubai World Trade Centre. The city has hosted this event for the past nine years. This four-day show spotlights emerging trends around the globe.
No Problems
Within the next two years, residential property prices are expected to stabilize in Dubai. Once again, investors are taking a serious look at the city's real estate. A leading consultant firm does not foresee any problems with the Dubai market.
“As long as the property supply doesn’t surpass the demand too much, we should see a stabilization of Dubai’s residential property prices within the next two to three years," explains a major consultant firm.
New Developments
By the end of 2011, Dubai is expected to see 50,000 new residential developments. Maybe the scale of development will not reach that exact number. Yet developments are now in the works that were on hold. As well, many buyers say that they plan to stay in Dubai for at least 3-5 years. Despite the downward trend in the past six months, things are looking up for this United Arab Emirate. An industry leader offered an explanation for the decline in Dubai residential rentals and sales in recent months.
"This downturn probably was mainly due to the holy month of Ramadan and summer vacations as well as buyers adopting a wait-and-see attitude. Many of the prudent investors were in anticipation that the prices would fall further, or the mortgage rates would get cheaper,” said a top consultant.
Good News
Banks are lowering mortgage rates in Dubai – sometimes to 5.99 per cent. The good news for Dubai buyers is reflected in pockets elsewhere around the world but Dubai is the darling in development at this time. Recently, there have been major encouraging announcements including today's news that the Real Estate Regulatory Agency would work with banks to raise up to $1.36 billion to finish 48 developments.
Emerging Trend
The truth is that mature economies are finding it difficult in recent years. Heavy debt is always a major issue – whether you are an individual or a mature economy. Developing economies are not burdened with that degree of debt and, therefore, they can grow at a faster rate. Rapid growth means higher returns and that fact is not lost on investors who are eyeing the Dubai market.
Eyeing Dubai
The Dubai real estate market looks attractive to investors and, no doubt, the city is a favorite with tourists. Yet the best measure of a city is how it cares for and nurtures its residents so that 'everyone' can live a productive and pleasant life within its boundaries.
Do You Have Your Eye On Dubai?