By the end of 2011, the overall situation of Dubai Real Estate wasn’t that encouraging but there still is something for the investors to cherish about. Emirate’s Land Department reported that the total transactions in Dubai properties rose 20 percent in 2011 as compared to that in 2010. It seems like the economic crunch, that hit the region in 2008, might just be hiccupping its way to death. Although the policies devised by the Dubai Government are yielding favourable results but the experts still have mixed opinion on the expected condition of Dubai real estate. Some say the year 2012 will bring good news for the sector while others claim recovery cannot be expected before 2016.
With dawn of 2012, some experts started expecting that recovery in real estate in Dubai is soon to be witnessed. It is mainly because of the fact that the transactions went 20 percent up in 2011. Local and international investors interested in Dubai property sector may get interested in investing more by noticing these figures. According to officials, the transactions made in Dubai’s property sector during 2011 were valued around AED 143 billion. All the financial reports showed positive index but the progress is still slow, which according to some experts is a steady sign.
While the other experts believe, the recovery process has begun as a slow trickled, limited to a handful of areas, and is not spreading to other parts of the city. The growth is seen in few posh areas, which never underwent any serious drop in prices, while others suffered huge loses due to oversupply. Few projects were completely abandoned and many were halted for undeclared time. These experts question that with such statistics, how can one assume that 2011 remained satisfactory for real estate in Dubai. According to them, the recovery will be considered positive, if a steady and uniform improvement in all areas of the state.
A big majority of experts are hopeful that the growth will soon become noticeable and increase the number of transactions in Dubai Properties. They believe that quantity, quality and property transactions procedures reflect the recovery and growth of real estate sector in Dubai. The credit of this recovery directly goes to Dubai Government as it has made every effort to stabilize Dubai real estate market and making the properties attractive for the investors. This growth is not just limited to sales of properties but Dubai rental properties, houses in Dubai and Dubai apartments are also observed to be in more demand as compared to that in previous years.
According to Dubai Land department officials, the figures point to a stable Dubai real estate sector as it is expected that this growth will lead to a robust recovery in near future. In spite of this growth, some experts believe that property prices will continue to fall and softening over the next five years because more housing units will be added to the supply line and the economic crunch will continue to cast its shadow over the real estate sector.
–
William King is the director of Dubai Properties, Rent in Dubai, Abu Dhabi Real Estate and Property in Dubai. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
|
|