Dubai, hardly a decade ago, was the first choice for people investing in real estate, especially for expats and international investors. Suddenly, everything changed right after the global recession hit this market. Dubai real estate market is hot again as the region’s tourist activity is growing. Dubai real estate is in high demand once again as international investors see great potential for investing in this lucrative region because the prices have bottomed out. High-net-worth individuals are confident to invest in Dubai real estate. Currently, this property sector is going through a transitional phase, investors are evaluating their investment strategies as property prices are recalibrated so the sector has once again become attractive for global investors.
The investment density by the global investors was not much striking during the last few years but current transactions in certain property areas such as Dubai Marina, Downtown Dubai and Jumeirah Lake Towers, has increased by 10 to 15 percent in last quarter of 2011. The trend was seen in the first quarter of 2012 as well. It is definitely seen as an increase in interest but there is still not a lot of buying. International investors are still waiting to see the next move of Dubai government. The property prices in Dubai have already dropped by almost 50 percent as compared to its peak values prior to 2008. However, the prices have shown signs of meek revival during the recent months. International wealthy investors never agree to invest in real estate sector unless they are convinced that the prices have bottomed out and the economic crisis will soon be over.
There are several things that attract local and international investors to invest in posh areas of Dubai such as Jumeirah Lake Towers, Marina Dubai, Discovery Gardens, Arabian Ranches, Jumeirah Beach Residences and so on. The biggest attraction for international investors in Dubai real estate is growth which is so exponential here. As per experts, the opportunities are endless as Dubai is bouncing back into action, though a bit slowly but this time with more stability. The growth does not indicate even the slightest economic crunch anytime in the near future. This kind of growth is very attractive for investors. Investors who have already invested in Dubai property can see a fantastic opportunity in the form of a hike in rental amounts and increased resale values of Dubai Properties (especially in posh areas) that is sure to increase significantly in the upcoming months and will spread to other areas in Dubai as well.
For the time being, one must be very careful about location while investing in Dubai. Making a decision to invest in Dubai is very smart and it is easier as well. It is because the real estate transaction processes are quick, convenient and straightforward in Dubai. Mortgages are also available to support and encourage foreign investment in Dubai real estate. These are a few most desirable features that an international investor looks for while investing in any international location like Dubai.
Real estate sector has been impacted a lot by the financial crunch, but it is also to significant note that wealthy investors continue to invest despite the financial slump. In spite of negative economic indicators, its strategic importance and location advantage cannot be ignored and it can be said that a bright future awaits its realty market.
William King is the director of Dubai Marina, Dubai Properties and Dubai Marina Property. He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.