True to the forecast of many real estate experts that 2013 will be the year of profound recovery for the whole of UAE as well as Dubai real estate markets is coming true. This bullish market trend is palpable across the property market segments asserting a sustained recovery from the erstwhile downturn.
Mention must be made of Dubai property with its positive impact on the overall UAE economy, with demand high for properties on rent and sale. The hyper demand for property in Dubai has pushed up sales and rental prices for all types of apartments as well as villas. According to information from market research agencies, the Dubai rental prices were up by 10 percent in the first quarter of 2013 compared to the same period in 2012. Despite price rise apartments for sale in Dubai is a bullish option.
Perhaps the best part is that Dubai’s recovery is not limited to a few areas but is spreading evenly seen by the spurt in local and international investors. Now the challenge is to sustain this boom without a feeling that this exuberance is not a bubble or another boom-and-bust cycle. Past experiences have taught that a sustained growth is far better than unsustainable growth that is short lived and triggers a market crash.
The charm of Dubai’s property market is its encouragement for foreign buyers. There are countless high value “freehold” properties to cater to the needs of international property investors. To get a resident visa, a foreign investor needs to make a property investment of at least AED 1 million.
Experiencing an upturn
The upturn in Dubai realty market is now steady. Among the sectors which faced pangs of growth constraints, it was the real estate sector that was the worst hit. But that very same sector is now rocking and assuring that the worst is over and recovery is really solid.
Nothing asserts this fact more virulently than the launch of a slew of high value real estate projects last year. Also the villas for sale in Dubai are commanding a premium. This gradual recovery had added cautious optimism about Dubai real estate sector in 2013. That has come true.
Says an analyst, this increased activity in the property market is attested by a growing number of closed property deals and transactions in the first quarter of 2013. Now more and more investors are taking interest in Dubai properties. But the choice is always high quality or high value properties.
Enticed by the current performance of realty sector, more and more international investors are drawn to Dubai property market. Besides the stellar performance of Dubai’s property market, factors gracing this recovery and boosting investor confidence are
- Positive economic growth
- Rising sales and rental prices
- Dubai’s safe-haven status
The fact that right now most of the property investors in Dubai are focusing on cash based transactions mean that the chances of a real estate bubble like the one in 2008 is unlikely.
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