Prices of Dubai property have bottomed out in previous few years. One of the major reasons for this was the oversupply of properties in residential as well as commercial sector. The decline in number of real estate transactions and thus decreasing property value throughout Dubai has been a result of this oversupply. Previous few years have been challenging for Dubai Real Estate market and posed threat to this sector. Despite the situation observed in previous years, the analysts have started getting positive vibes about Dubai real estate for 2012. The decline observed in Dubai property prices during third quarter of 2011 slowed down in 2012, which gave hope to analysts that this year would begin on positive track.
The banking sector and financial institutes in Dubai also offer attractive packages of loans and mortgages to boost up Dubai real estate sector. In the beginning of 2012, seeing the recovery reports of realty sector and the offers of banks and mortgage lenders, analysts said that Dubai real estate sector will show profitability this year as corporate sector is all set for to witness a stabilized growth. Residential sales transactions are also predicted to experience a surge in 2012 due to the steps taken by Dubai Government.
The official report of the UAE real estate sector has been presented to the stakeholders of UAE real estate. According to official figures, a surge of 33 percent is noticed in the value of real estate deals registered in Dubai during the first quarter of 2012. The rental market has also shown positive signs. In contrast, total number of property transactions surged 84 percent as compared to the previous years’ figures. In comparison to Dubai, Abu Dhabi real estate continues to experience a downward trend during 2012 due to fresh delivery of property units.
Despite economic recession, the speedy recovery of Dubai real estate during 2011-2012 is a clear indication that market is moving on positive path. According to some real estate experts, the recovery and stabilization in both residential and commercial real estate is limited to few prime locations. Few communities like Arabian Ranches, Dubai Marina, Jumeirah Lake Towers and Business Bay have been performing well. A uniform and steady recovery is expected this year. Commercial sector is not showing the same growth as that experienced by residential real estate sector of Dubai. According to experts, entrepreneurs and buyers will show interest in Shops in Dubai and this sector will also show progress near future.
Due to capital shifts and implementation of government policies, the prices of residential properties have taken a lead as compared to the prices of offices and shops in Dubai. The residential sector has defeated the commercial real estate sector when it comes to stability in terms of demand and value. According to official reports, thousands of Dubai property units are in pipeline but government has decided not to add these units in the existing market right now. These property units will be added in the market with the passage of time according to the market needs and requirements. In this way, market will have capacity to absorb the new supply of property units and not disturb the existing balance of demand and supply.
All these factors are depicting positive attributes to Dubai real estate, making the realty market more attractive and mature than it was in past.
William King is the director of Shops in Dubai, Dubai Property and Dubai Shops . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.