Categorized | International

Industrial Real Estate in Dubai Is Flourishing

Please Share!

Although the residential real estate market of Dubai continues to struggle, the industrial real estate market there has shown signs of great strength. Many investors and investment companies in Dubai are fiercely competing for industrial space, thus driving demand and values up at strong levels.

The overall demand in the industrial real estate market in Dubai represents a strong contrast to the overall residential housing real estate market in the city. With a great deal of excess in the supply of apartments and housing, many experts believe that Dubai could face an unprecedented crash in its residential real estate market.

Because the residential market in Dubai has been in such shambles, many landlords have opted to discount rent, or even offer free months of rent to set them apart from their competitors. As such, rent prices have severely declined in the city over the past twelve months. What is even more troublesome for investors in the residential real estate market in Dubai is that many believe that the oversupply has not yet reached its peak, and that it won’t do so until some point next year.

With the overall success of the industrial real estate market in Dubai, many property owners are converting their residential apartment units into commercial space. The demand for commercial leases far outweighs the overall lack of demand in the housing market. Thus, it makes perfect sense for residential property investors to target the industrial property clientele in order to cut losses, and eventually bring in a positive cash flow.

Please Share!

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.

Leave a Reply

Twitter Chat