When will the real estate market be on the up in Dubai? Will it actually be able to recuperate after so many catastrophes? These are the questions lingering in many real estate investors’ mind, especially those who are sitting with their savings stuck in some incomplete property. Many are waiting for the market to recover completely, including the developers, construction companies, laborers, investors, and real estate agents, to name just some of the stakeholders in Dubai real estate market. Nobody knows for sure (perhaps Paul the Octopus but even he has retired). So, while we cannot predict with the surety exhibited by Paul the Octopus, we can still have a look at the odds and make a calculated guess.
Looking at the circumstances, odds are that the real estate market in Dubai is going to bounce back. Exactly how long will it take for demand to get closer to the supply is anybody’s guess but apparently it’s going to take a little longer than most experts initially expected. It’s hard to expect an upturn as long as the nations do not recover completely from the financial slump and Dubai takes care of its massive debt crisis. Recovery process can only start once the deterioration has stopped, and right now the deterioration in Dubai property market has stopped. Prices are a bit stable as compared to past and one can expect further improvement in the prices. Therefore, property owners who were anticipating a sudden upturn in property values will have to wait for a while (in fact a long while if the truth be told). Residential properties observed a trivial increase in prices, but that shouldn’t be mistaken as the complete recovery of Dubai property market. Especially when we know, that many residential properties are in the offing.
In spite of all these nerve-racking developments, there are some positives as well. For example, there were more transactions in this year as compared to the last two years. While it is not a sign of complete revival, it shows that the market is still active. However, most of these transactions involved completed properties, contrasting to the early years when a large proportion of transactions were made up of off-plan properties. It shows that the demand is there, it’s just that the buyers are suspicious of incomplete properties. Therefore, it’s safe for investors to focus on places like Jumeirah Village, Dubai Marina, Business Bay, Jebel Ali or Deira.
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