In UAE, Tighter Regulations Lead To Real Estate Stabilization

In UAE, Tighter Regulations Lead To Real Estate Stabilization:



"Once the world’s hub of luxury high rise development, the United Arab Emirates city of Dubai has learned the hard way. Oversupply and high rents in glamorous high rises along the Persian Gulf (Arabian Gulf for the Emiratis, however) fell to the basement floors during the 2008-09 financial crisis. As a result, UAE’s two most popular cities for fancy housing projects — Dubai and Abu Dhabi –forced stricter regulations on buyers and developers. The outcome means oversupply is no longer a dire concern, and the luxury market in these two cities is much more sustainable. All of this bodes well for long term investors in this former Arabian frontier economy.



“The UAE market is headed for broader stability. Over the next few months, there will be a correction in areas seen as overvalued while at the same time there will be pockets that will maintain their upwards climb,” said Haider Khan, CEO of UAE real estate portal Bayut.com.



Thanks to tighter regulations by the U.A.E. government and a more conservative business plan from property developers, the residential real estate market of Dubai in particular is becoming more stable. Although property prices skyrocketed 35% in 2013 and rang all sorts of alarm bells at the International Monetary Fund and World Bank, 2014 has seen Dubai real estate investors take their collective heads out of the clouds."



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