What lies ahead for Dubai’s property market? The answers are not known, and anybody’s guess is as good as the other. The present state of the property market and the financial sector- once the precursors of Dubai’s growth- is at best uncertain. Various opinions float around the skies of Dubai, depending upon the giver’s experience and perception. What is alarming is that the stock markets both in Dubai and AbuDhabi have experienced rapid declines in trading sessions last week. A pallor of gloom hovers over the city, where tall skyscrapers glisten in the desert sun. Alas, the gleam could be short lived.
In fact, many of the British and other expatriates who had invested in Dubai over the last few years in real estate have seen the value of their properties dwindle to at least half their original purchase price. And there are those who opine that given the current state of the market, the prices are still high and are expected to fall further. In fact the general consensus is that the property market will undergo a further downward correction of at least 30 percent before rebounding. It’s best to sit tight and wait if one can, since all this is expected to occur within the next six months or so. Those who can hold on to their investments will definitely stand to gain something. This is the opinion of the majority of Dubai property management dealers all across the emirate. So it really does not matter if you have invested in Dubai furnished apartments or Dubai holiday apartments or even Dubai hotel apartments, the general consensus is that you will gain, or at least have the chance to recover your investment if nothing better, once the correction has occurred. The same goes for schools in Dubai.
On the positive side, some real estate advisors and developers such as Colliers International Dubai have reported a rise in activity in respect of transactions occurring over all sorts of real estate deals in Dubai. In fact properties still open for foreign investment have seen an increase of 7 percent in investment over 2008. Though construction activity in Dubai is nowhere near its previous peak, builders are still completing some projects to meet delivery deadlines. On the whole it is estimated that occupancy rates for new projects in completion will not be more than 25 percent.
Sooner or later, Dubai will itself have to work its way out of the present crisis. Harping on the debt liabilities of Dubai World will die down soon enough once the company presents its new plan to the creditors meeting this week. That settled, the stock markets should recover forthwith and with it some investor confidence will return.
The remaining problem, analysts wonder, is whether this crisis is just the tip of the iceberg. The answer is that Dubai has enough foreign reserves to withstand the present crisis if need be. Being the world’s sixth largest holder of foreign exchange reserves, as well as having sizeable investments all across the developed world, Dubai as an emirate and even Dubai World as an entity have the ability to withstand and recover from the present scenario. All the expatriates have certainly not left the emirate, as evidenced by those being seen in the supermarkets and their kids in Dubai schools and some still have faith and hope that Dubai will rise to its former glory once again. We can only wait and see.
In fact, many of the British and other expatriates who had invested in Dubai over the last few years in real estate have seen the value of their properties dwindle to at least half their original purchase price. And there are those who opine that given the current state of the market, the prices are still high and are expected to fall further. In fact the general consensus is that the property market will undergo a further downward correction of at least 30 percent before rebounding. It’s best to sit tight and wait if one can, since all this is expected to occur within the next six months or so. Those who can hold on to their investments will definitely stand to gain something. This is the opinion of the majority of Dubai property management dealers all across the emirate. So it really does not matter if you have invested in Dubai furnished apartments or Dubai holiday apartments or even Dubai hotel apartments, the general consensus is that you will gain, or at least have the chance to recover your investment if nothing better, once the correction has occurred. The same goes for schools in Dubai.
On the positive side, some real estate advisors and developers such as Colliers International Dubai have reported a rise in activity in respect of transactions occurring over all sorts of real estate deals in Dubai. In fact properties still open for foreign investment have seen an increase of 7 percent in investment over 2008. Though construction activity in Dubai is nowhere near its previous peak, builders are still completing some projects to meet delivery deadlines. On the whole it is estimated that occupancy rates for new projects in completion will not be more than 25 percent.
Sooner or later, Dubai will itself have to work its way out of the present crisis. Harping on the debt liabilities of Dubai World will die down soon enough once the company presents its new plan to the creditors meeting this week. That settled, the stock markets should recover forthwith and with it some investor confidence will return.
The remaining problem, analysts wonder, is whether this crisis is just the tip of the iceberg. The answer is that Dubai has enough foreign reserves to withstand the present crisis if need be. Being the world’s sixth largest holder of foreign exchange reserves, as well as having sizeable investments all across the developed world, Dubai as an emirate and even Dubai World as an entity have the ability to withstand and recover from the present scenario. All the expatriates have certainly not left the emirate, as evidenced by those being seen in the supermarkets and their kids in Dubai schools and some still have faith and hope that Dubai will rise to its former glory once again. We can only wait and see.
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