Tag Archive | "Dubai"

Dubai Housing Market Shows Signs of Stability

After standing tall as one of the most popular housing markets in the world, Dubai’s residential real estate market has been one of the hardest hit areas across the globe. For years, the market was plagued with uncertainty and confusion in ownership, both of which led to disastrous results.

 

However, the first few months of 2012 have shown that Dubai’s residential real estate market may be heading down the road of recovery. Home sales increased in January and February for the first time in years in Dubai. Economists have already considered some areas as being stabilized markets, which is great news for the city.

 

One of the reasons for recovery, particularly in the villa market in Dubai, is that consumer confidence is higher than it has been in years. As the local mortgage market continues to regain strength, more potential homebuyers are looking to potentially buy a new home.

 

Mortgage rates offered by local lenders are now being offered as low as three and a half percent. Many lenders are also cutting back on fees to entice potential homeowners to buy their first property. As such, many have jumped at the opportunity, and are seeking homes in the more desirable neighborhoods.

 

Both homes and apartments in prime areas of Dubai are expected to continue their newfound growth, and thus, perform well on a grand scale. On the other hand, homes and apartments in the less than desirable end of Dubai have seen continuous declines in value, as those areas have been plagued by oversupply and minimal interest.

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Dubai’s Real Estate Market Growing More Secure

For many months, Dubai’s residential real estate market has struggled, as confusion regarding property ownership pushed away many potential investors. The market, which was once viewed as one of the most prominent in the world, quickly became viewed as a poor investment at best.

 

However, things are finally starting to look up in Dubai. It’s residential real estate market has had a positive start this year, and many analysts believe that the region is the most transparent and secure it has been since its market boom. As such, investors are now considering investing in the city’s residential real estate market once again.

 

Many residential real estate experts believe that the housing market in Dubai has hit its bottom, and will soon start to see sales and overall housing values increase. Property prices have fallen as much as sixty percent in most areas. The current low prices make the city a residential real estate investors dream. Many local buyers are starting to show interest in investing in the housing market.

 

Interested local investors currently outnumber international investors at the moment, though it is likely that those investors from Asia, Europe, and the United States all look to invest once again in Dubai in the coming months. Dubai’s economy is expected to increase roughly four and a half percent this year, which will serve to push up housing prices in the city.

 

While the housing market in Dubai is still one that favors buyers, sellers will soon start to reap the benefits in the near future.

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Dubai Property Sales Experience Slight Increase

The Dubai residential real estate market has struggled through immense declines in value and sales over the past few years. Having once been considered the hottest property market around the world, they have since fallen drastically since that garnering that distinction. However, a recent report may indicate that perhaps things are on their way back up for the region’s property market.

According to a recent report, property sales in Dubai have increased by more than thirty percent since 2009. That statistic has some analysts hopeful that Dubai’s property market is improving, and that the region is recovering from the freefall in the number of sales that took place during the real estate crash.

However, other analysts are not so hopeful, and believe that the report is cherry-picking numbers to make the market look better than it really is. The sales figures are still down by more than seventy percent when compared to what they were at during the market’s peak. In 2008, the market had roughly five hundred and thirty transactions completed each month. That figure now resides at one hundred and sixty per month.

Those analysts that believe things are improving in Dubai cite the fact that banks are reducing interest rates, thus making the market for attractive for investors across the globe. Chinese and Indian investors have taken notice, and are buying properties in the area.

It is not likely that the market will come anywhere near its peak figures from 2008, though real estate agents and analysts alike are hopeful that performance is improving.

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Real Estate Market in Dubai Not Expected to Recover for Years

Dubai’s property market was once booming, and considered to be one of the strongest in the world. Times have surely changed, as the market has plummeted over the last year. Any hope that the market would quickly recover have diminished, as analysts now believe that the real estate market in Dubai won’t see a real recovery for at least another five years.

Oversupply has been one of the primary causes for the severe market decline. The market is not likely to improve until supply and demand equalize. Even after equilibrium in the market is achieved, it will still take years for prices to reach the levels achieved during the previous real estate boom.

The market currently has a twenty-five percent oversupply, and is expected to drop another ten percent before it stabilizes. Other areas in the region face the same struggles, as Abu Dhabi is expected to drop another fourteen percent.

Despite the struggling real estate market in the region, Dubai is still considered to be the safest investment option in the Middle East, as neighboring regions have struggled with political turmoil for the last two years.

Analysts attribute Dubai’s struggling market to the region’s own success. It was once considered one of the fastest growing property markets in the world. Developers and investors flocked to Dubai with the intentions of building more properties. Unfortunately, the global recession changed the outlook of the real estate market quickly, and the abundance of properties recently built was never occupied. As such, the market has since suffered from an oversupply of properties, and will likely face a long road to recovery.

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Dubai’s Commercial Real Estate Market Continues to Struggle

Commercial real estate sales dropped almost fifty percent in Dubai during the third quarter. Dubai’s commercial real estate market has struggled throughout the year, and this most recent decline reflects much of the uncertainty that still exists among investors in the region.

Rents in Dubai also fell during the third quarter, and have now dropped nearly twenty percent this year. The decline in rents can be attributed to reductions made by landlords in order to attract tenants. Residential property prices also experienced declines, with smaller homes being hit the hardest.

Only the luxury property market performed remotely well. Such properties have experienced only a two percent decline in the past year.

After a major property boom from 2002 until 2008, the market was hit by a major crash as a result of the global financial crisis, and has failed to recover since. In fact, the market has continued to decline. Since 2008, the residential real estate market has fallen more than sixty percent.

Analysts fear that the market could fall even further into 2012, as an abundance of new homes are expected to hit the market for the first time. They believe that the market may drop another twenty percent before all is said and done.

In the end, there is no clear indication that prices and sales will improve any time in the near future. With another global financial crisis looming, and real estate markets around the world continuing to face declines, it is not likely that Dubai’s market will recovery any time soon.

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Global Economic Turmoil Affecting Dubai Property Market

Any hope that Dubai’s property market would once again surge in the near future has essentially been shattered according to the latest reports. As fears of another global recession linger, the overall forecast for the Dubai property market is one of very slow growth in the coming years.

While the Dubai market is not expected to take a turn for the worst, it is expected to slow down substantially. For many investors, that news is not exactly welcome. Many had believed that Dubai was due for a very quick rebound after facing a downward trend for the last two to three years.

Real Estate analysts believe that Dubai will not start to demonstrate a significant recovery until 2014 unless another global recession is somehow averted.

Many analysts believed that recovery was imminent not too long ago, as price increases were starting to be seen across the residential real estate market. Furthermore, Dubai has proven to be the most stable real estate option in the Arab region in the past few years.

Fortunately for Dubai property owners and investors, the emirate is not expected to see a decline in the real estate market, but rather a period of stagnation. Properties in the emirate are still very attractively priced, and those that are able to weather the storm of a global recession will likely still consider buying property in Dubai.

Although Dubai is not facing the same debt crisis as many of the European nations currently in turmoil, it would be indirectly affected by a global recession. Should such an economic situation sweep the globe, it would likely cause oil prices to fall. Declining oil prices would adversely affect the Dubai economy, though many believe that it will not present a major problem to the emirate.

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Dubai Real Estate Investors Are Getting Smarter

After a period of great pessimism with respect to its residential real estate market, things are finally looking up for Dubai. Much of the uncertainty and disarray often associated with an unstable residential real estate market plagued the region for the first quarter of 2011. However, the most recent outlook on the residential property market and its investors indicates that strong growth is ahead for Dubai.

No longer are investors solely looking at potential in location, but rather they are looking for existing quality and detail. As such, the investors are getting smarter by looking for properties that project guaranteed immediate growth. These investors are often considered to prime buyers, and they are expected to contribute to an anticipated six percent growth over the next year.

The most current breed of investors recognize that overall growth and profit come not from simply owning properties, but rather owning properties that have amenities, and prime location within a community. In general, such properties maintain their value, and are also most likely to experience growth.

Many of the neighborhoods and suburbs that are classified as being prime locations for residential properties have continually experienced gains in prices and sales, even during the difficult first quarter of the fiscal year.

Rent prices in prime locations have also experienced similar growth, as they have increased roughly one percent in Dubai. On the other hand, rent prices in less desirable areas have actually experienced a decrease, as they are unable to attract enough demand to meet the excess supply of rental properties.

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Dubai Real Estate Market Sees Mixed Results

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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Industrial Real Estate in Dubai Is Flourishing

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.

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International Investors Taking Serious Interest in U.S. Real Estate

While most United States citizens are shying away from buying a home due to the troubled economy, many foreign homebuyers are considering now as the perfect time to buy property in the United States real estate market. As prices continue to fall, particularly in prime cities and warm areas alongside the ocean, international buyers, from such countries as Brazil, Canada, Russia, and China, are buying properties at astounding rates.

Home values in the United States have fallen over thirty percent in the last four years, and some analysts believe that they will fall even more before the real estate market finally hits rock bottom. Part of the reason as to why prices have dropped so dramatically is the number of foreclosures that continue to hit the market.

Not all international investors are buying homes in the United States with the intentions of living in them. Rather, they are seeing these properties as excellent rental investments. Many current homeowners are leaving their houses in favor of renting, which is making the rental market more and more lucrative.

Because the dollar is still strong, and market values are depressed, many Canadians are intrigued by the United States housing market. In fact, recent surveys have shown that as much as twenty percent of Canadians are considering buying property in the United States. Many of those that said they were interested prefer southern states like Florida. That should come as no surprise, however, as the majority of those buying property in Miami are foreign investors from Canada, Italy, Russia, and Dubai.

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