subject: Safe Haven Status Helps Dubai Attracting Property Investors [print this page] Despite the ups and downs observed in Dubai real estate market, one thing has been made sure that no matter what the circumstances are, development and construction work will not stop here. It is one of the many factors that have dragged Dubai real estate sector out of doom. Burj Khalifa is the biggest example in this regard. According to Bayut.com, continuous development in Dubai kept attracting international property investors from all around the world. Upon checking the stats of foreign property investors in Dubai, it has been found out that every investor in Dubai has different intentions behind the investment.
Dubai real estate A safe haven
Asian investors consider Dubai real estate market a refuge from currency depreciation so they prefer investing in nearby booming realty market instead of their own country. For the Middle Eastern, European and Russian investors, Dubai stands as a safe and developed international city to protect their investment. After four years of recession that slashed the property prices down to 60 percent, the market has finally stabilized and showing robust recovery in selective areas as well like Dubai Marina, Palm Jumeirah, Jumeirah Lake Towers (JLT), and Jumeirah Beach Residence. A major reason behind this recovery is an influx of foreign investors who consider Dubai a safe haven.
Current perception about Dubai realty market is that it has bottomed out and properties here are available at reasonable prices. Therefore, if anyone is looking for long-term investment to secure his money, Dubai seems to be an ideal choice.
Dubai real estate Recovery
Though the recovery is not being felt throughout the market, especially in less popular areas of Dubai where prices are still low, yet the year 2012 has concluded at positive notes and promise better stats for 2013. As compared to the first three quarters of 2011, apartment prices have increased almost up to 5 percent duringQ1, Q2, and Q3 of 2012. Similarly, average apartment rents in Dubai have increased up to 4 percent in 2012. In posh and well-established communities like Palm Jumeirah, Downtown Dubai and JLT, the apartment rents have increased up to 8 percent quarter on quarter.
It is also noticeable that demand of Dubai Marina, Downtown Dubai, Palm Jumeirah and JLT apartments for rent has increased tremendously. It supports the statement that Dubai real estate has started performing at a medium pace. Another reason of recovery is that as compared to several international cities, Dubai is cheaper or it has become so because of realty market crash.
Dubai real estate Future
Though Dubai realty market is recovering but it will take some years to regain its pre-2008 status. The market will keep on improving but with a gentle pace. The recovery is certain but over-supply and a lot of pending projects are hampering it. Thousands of residential property units are scheduled to be added in the supply line by the end of 2014.
The safe haven status certainly helps Dubai attracting more and more property investors from all around the world but government must look at the supply line and interact with real estate experts to deliver property units in the market that cannot hurt the realty market recovery.
