Why Upscale Areas Of Dubai Boast Rapid Recovery?

If you are related to Dubai real estate sectorin any way

, you must be aware that its recent recovery is limited to selective areas and thus considered as selective stabilization. Real estate experts at Bayut believe that this recovery will soon spread into the rest of the areas while the others are not sure about it, since, according to them, this elective recovery is limited to upscale areas of Dubai and has created a fragmented property market, which can be harmful for the sector in longer run. The experts, who favour the segmented recovery, claim that growing demand of high end properties will eventually drive demand for low end properties.

Amongst several high end areas, Dubai Marina, Palm Jumeirah, Downtown Dubai and Jumeirah Lake Towers are the top performing and most sought after areas in Dubai even during recession period. These are a few areas where demand remained high all the time because investors are interested in buying properties in posh areas of Dubai. The full occupancy rate of most of the Dubai Marina developments and ever increasing prices of Dubai Marina apartments clearly indicate that high quality property developments appeal a large number of wealthy investors. At the same time, a 40 per cent increase in the prices of properties in International City and Discovery Gardens boast the trickledown effect of recovery in high end areas.

Apart from the statistics, people want to know the reasons behind the recovery of upscale areas in Dubai? Lets find out its answer in the following article.

Limited supply of Properties!

It is not wrong to say that limited supply of properties in high-end areas of Dubai is deriving the prices up. Limited supply always draws wealthy investors attention and same is planned for the upscale areas of Dubai. Investors appetite for Dubai real estate has increased because of glitzy and swanky developments but the additional supply is mostly added to secondary locations or relatively low end areas of Dubai. While, supply in high end areas like Dubai Marina, Downtown Dubai and Palm Jumeirah is comparatively low and strategically planned.

Supply has inverse relationship with demand. Low supply of Palm Jumeirah, Downtown Dubai and Dubai Marina apartments and consequently increasing demand is a prime factor in accelerating growth in premium areas.

High & Long term Yields!

Property investment is the best mode of investment and no other investment promises similar high returns. Property investors, around the world, solely invest to earn high yields from their real estate investment in form of rental amounts or high sales price. They know it very well that no areas other than upscale locations of Dubai can do a better job in this regard. This investment provides a better hedge against inflation and secures their hard earned money. Therefore, most of the wealthy investors prefer investing in high end properties of Dubai.

Currently, high end properties like Dubai Marina apartments are available at nominal rates and this opportunity beguiles investors to invest only in the high end segment of market.

Consistent Performance!

Dubai real estate is a widespread market that is open to investors from all around the world. Therefore only prosperous investors prefer investing at this international location. A number of freehold property developments are designed keeping in view the demands and lifestyle of international investors therefore a lot of wealthy investors are keen to invest in posh areas of Dubai. These areas are equipped with world class facilities and amenities that keep on luring the wealthy investors.

At the same time, the investors noticed strong demand and consistent growth of these areas even during recession days so they prefer investing in posh properties. The better infrastructure, provision of the finest facilities and luxurious lifestyle prevalent in these areas is rapidly recovering high-end sector of the market.

by: William

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