The real estate in Dubai witnessed a bubble boost few years ago and all the investors who entrusted their capital there had to face huge loss but it was mainly due to the heavy demand that the prices grew but in due course of time they could not maintain there standings and crashed however, by the mid of the second quarter of 2012.
2013-2014 looks promising for the real estate industry in Dubai as the UAE Central Bank announces caps on mortgage loan to value ratios to keep a tap on real estate prices.
Some highlights of Dubai market
The Dubai economy has projected growth by 4.5% due to aggressive activities in tourism, retail, commerce, hospitality and logistics. The political stability also has a lot of contribution in it.
New scale projects were announced out of which most prominent ones are Mohammed Bin Rashid City (MBRC) it will include the world’s biggest shopping mall, a franchise of Universal Studios, hotel facilities and Public Park.
There has been an increase in rentals of both commercial & non commercial occupancy. The residential market has also surged up & the villa market has bloomed but apartment sector has a slow progress. Strong Demand is still there for retail space which has promising rental returns.
The hotel sector has shown a stable progress and a lot of new hotels have also come up as the tourism industry has always been very promising in Dubai.
The element which needs to be considered here is that in general globally the property market is still facing the slump but the Dubai and its other emirates are growing. It witness a hike of around 15-20%.
Thought the investors and property buyers have been cautious, but have not lost their interest in the Dubai market. The demand for Dubai real estate, residential and commercial both have not just remained stable but also showed an upward trend. Market stability has been assured by the government but more than that the positive trends in real estate have boosted the confidence in buyers.
When we talk about the best selling Dubai Real Estate residential sector it include villas & apartments whereas for Dubai Commercial Real Estate warehouses, offices & labor houses top the list. Currently Holiday properties are also getting very popular among expats & locals they include beach resorts, condos & villas.
Rental trends have always been high in Dubai as properties are available on rentals for short & long term both it ranges from villas and luxurious hotel room, studio & large apartments. Bearing in mind the global finical crisis and the uninterrupted real estate growth we can easily imagine how lucrative it will be when the financial situation normalizes globally.
Prospect in Dubai Real Estate
There is a lot of prospect in making investment in Dubai Real estate and you have ample of options to choose from according to your investment requirements.
Free Hold Properties
Owing a private or full right on property is possible if you buy a property on ownership which includes property title and land. Now, all foreign nationals can have 100% freehold ownership properties on selective properties in Dubai.
All the development that is taking place in Dubai is not only increasing tourism but also man power which is employed to make it happen this directly affect the Real Estate market.
Dubai is a hub for tremendous and craziest architectures found around the world Dubai is the only city in the world which has a 7 star hotel so you can well understand its significances.
Real Estate Projects
A lot of real estate projects come up in Dubai to meet the requirement of its visitors & yet have potential for many more.
Some exclusive landscapes in Dubai
Dubai is a land of world’s latest crazy yet fabulous attractions feature several projects such as the Burj Khalifa , which is the tallest building in the world having height of 829.84 m (2,723 ft.). Burj Khalifa is a project of $1.5 billion, 28,000 glass panels in clads, has 160 floors and nearly 500,000 sq. m of space for offices and flats. This tower is named after the Abu Dhabi ruler he had played an active role in the development of Dubai .
Dubai mall is largest shopping mall in the world located in the Burj Khalifa the complex has 1200 retail shops. It has a sporting arena where has ice skating yes you read right ice skating in the scorching heat. An Aquarium and Discovery Center in the mall attracts nearly 37 million tourists on a yearly basis.
Points to Ponder before entering Dubai’s real estate market
If you are planning to step in the Dubai real estate market than you must ponder on a few points it is not that the market is unsafe but you would like to invest in a place where returns are promising.
If you are an expat and want to get residency visa in Dubai than you need to invest in a project that offers same but getting a residence visa & getting a work permit are two different things so do not confuse them. If you are planning to buy villas, condominium units or apartments, ensure that it has the one year free maintenance clause in the contract you are signing. Also be sure there is a defect guarantee for the structure for at minimum 10 years,
If you are purchasing a property from a owner and not a developer than ensure that you inquire about the actual price of the property. Also assure that cover for transfer fees liability is clarified, the transfer fee allows you to transfer the place on your name & can be up-to 7% at times. Therefore it is best to get it sorted as it may spoil your plans on the eleventh hour.
Just remember no matter what there is a lot of scope in the Dubai Real Estate and will give you promising returns or may save up on accommodation when you plan your next vacation in Dubai.