Dubai Property Market

Recent months have seen a distinct change in the Dubai property sector, as more challenging global financial conditions have permeated into the previously impervious Dubai real estate sector. In recent years we have seen the majority of the property investment in Dubai focusing around the more tourist orientated destinations such as the Dubai Marina, the Waterfront and Sports City. In Dubai there are now strong signs that the government is getting some sort of grip on the excesses of the Dubai property market - and about time too. We have long viewed the market as quite high risk. Like some of the buildings in Dubai the property market has seemed to defy gravity.

The small Emirate of Dubai, part of the federation of seven States called the United Arab Emirates, has seen an unprecedented boom over the last 10 years in its property market. A deposit would be paid by the buyer to the seller, normally 6%-11% of the value of the property, as a commitment by the buyer to purchase the property. In recent months the Dubai property market has taken a buffeting. Real estate prices in Dubai's property market had been hugely inflated. People were putting money in property not as end users, but as investors.

Property prices plummeted and investors scrambled to off load their investments. A realignment of property prices was needed, to be in tandem with actual property demand and supply. Although the short term fallout is difficult to weather, it is a fact that this correction will lead to long term sustainability in the Dubai Property Market. The overblown property market has learnt its lesson. The Dubai property market has weathered the storm and is now inching its way back to survival. Low prices. A property market that is just asking for buyers and investors is the current Dubai property market. Buyers never had it as good in Dubai as they rush to make the most of low rentals and dropping property rates. People moving to the Dubai property market either for work or for investment reasons are being drawn by lower prices and a better lifestyle. Property downswings have not affected the quality of life in Dubai at all.

Working in the Dubai property market, we are constantly asked by clients where we feel is the best place to invest in Dubai, with the majority of questions focusing on the better known developments such as Dubai Sports City, Dubai Marina and the ever popular Waterfront area. Investors focusing on high yield, short term holiday accommodation have traditionally led the tune throughout the emirates property sector.