What`s In Store For Dubai Real Estate Over The Next Few Years

Predicting the latest events in the Dubai real estate market seems to be everyone’s favorite pastime these past few months. With talk of imminent downturns, sharp readjustments, crashes or just a general cooling of prices, the state of the market in the next few months really depends on who you talk to and what you read. Such events are always likely to capture attention, but no one seems to be focusing on the long terms future of the market! Sure, what happens in the next few months if of interest to us all, but we should not overlook the bigger picture, and that is the long term outlook of the Dubai freehold property market below we weill give you an update and hopefully a better understanding.

Dubai has become one of the biggest property market success stories in recent times. Prices here have shot up since foreigners were allowed to purchase property in the tax free Emirate. At the same time, Dubai has turned itself into one the world’s top tourism destinations, and has attracted attention from all over the globe. What but now? Property prices here have reached record levels, and prices have continued to rise in 2008, and many are split as to whether prices here can be sustained. Can they, and is the long term health of the market still looking positive? When is the right time for buyers to buy and for investors to sell Dubai property?

One of the largest factors for the continued price increases seen in the Dubai real estate market has been that demand has always outstripped supply. A rapidly growing population combined with countless project delays equals one thing, and that is price increases!  So these two factors will play a crucial role in the success of the Dubai real estate market in the next few years. The only problem is statistics for both are not totally clear. We don’t know what proportion of the increasing population is going to be low income construction workers, and what proportion will be from wealthier demographics likely to purchases a home. What we do know is that the population is growing, and growing fast. With its great tax benefits and enviable life style, Dubai isn’t going to struggle to attract people.

Delays look set to continue for the time being, so don’t expect to see an oversupply of freehold property anytime soon. And when all the delayed property finally does come to market, what then? Well it’s not totally clear, but it still seems that new property coming onto the market is doing so in a steady manner, rather than in one big go, allowing for a stable readjustment, if any. However if predicted population increase are proven correct, then the chances of their being a large oversupply of property down the road currently look slim. The Dubai property market will certainly be interesting to watch in the coming years, but at present the future remains positive.

If you are interested to buy or sell Dubai property we can be contacted on the link below to answer any of your questions.
 

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: