Categorized | International

Dubai Real Estate Market Sees Mixed Results

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According to the most recent reports regarding Dubai’s real estate market, the emirate has had great success in some sectors, while others continue to struggle. Unrest within the region, however, has actually benefitted the real estate market, as Dubai has been considered a safety zone for many.

Hotel, retail, and residential real estate properties have experienced significant gains in the past few months, and are recovering from previously experienced hard times following the global financial disaster.

Many investors are looking at the retail and hotel sectors of the Dubai real estate market as potential areas of strong growth. With much of the Arab world in disarray due to civil unrest, Dubai looks to be the only sure bet for potential real estate profit. As such, prices in the hotel and retail sector continue to rise.

Some experts, however, believe that the current boost will be somewhat short-lived, as there are fears that another global financial crisis will yet again take place in the near future. Furthermore, supply in the residential real estate market is expected to exponentially grow, causing prices to remain artificially low.

The office real estate sector in Dubai has not yet seen any improvements, and as such, continues to struggle. With nearly fifty percent of office space vacant, values continue to plummet. There is home among real estate analysts in Dubai that if the world is able to avoid another global financial meltdown, then office vacancy rates in Dubai will drop. A drop in vacancy rates in Dubai office space will go a long way in helping to increase values, as well as boost the real estate sector

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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