On the dark side, Dubai prices have further dropped. On the
bright side, the price drop has made the market extremely buyer-friendly.
General home buyers and investors, for whom owning a property in Dubai was once
a farfetched dream, now have thousands of homes, villas, apartments and commercial
property in Dubai available for sale at unimaginably low rates.
To an enthusiast of this emirate, the present activities in
the Dubai stock market and construction and housing sectors could only be
expressed as terrible. Though the doomsayers would always maintain an ‘I told
you so’ attitude, the truth is that the market is showing a response to two
factors. One is the long term negative trend that has crept in since Dubai’s
economy has been affected by the recessionary trend that has enveloped most
nations of the world just after the financial crisis in the USA’s housing and
banking sectors. The second, shorter term fiasco has resulted in a negative
stand originating from the news that the Dubai Government was reluctant to
bailout Dubai World from meeting its debt obligations.
So is this a good time to capitalize on Dubai’s property
market and Buy Property in Dubai? Some analysts would say yes, others would say
hold on because a further drop is expected. Still others would state that it
depends on your holding power and the place in which you have invested or plan
to invest your money. For example, villas and marina apartments are still
seeing rising prices and a lot of activity in the property sector. The outlook
for hotels and city apartments meanwhile is a bit muted, as the recent
unemployment has led to an oversupply of available rental units and reduced
rents in favor of the tenant.
Some analysts still maintain that we have not seen the worst
of it yet. They point out that a lot of developmental projects are slated to be
completed by end 2010. If we factor this in, the oversupply of apartments will
be almost 33 percent compared to the 10 to 16 percent that we see now. That,
say analysts, would be an exciting time to capitalize on the property sector.
Others plan to wait till mid-summer 2010 since March-April is traditionally the
time when the property sector has been at its lowest historically. But almost
all property sector analysts are sure that a rebound will occur in 2011. We’ll
just have to wait and see.
Anyhow, the current market correction, that many property
developers in Dubai called inevitable, has made it possible for a large segment
of the city’s residents and local and overseas property investors to own a
property in as bustling a metropolis as Dubai.
According to Rohan Marwaha, Managing Director of Cityscape,
Cityscape Abu Dhabi will remain unaffected and will retail the same name
because this particular event focuses real estate developments in Abu Dhabi