Travel Dubai, to the “Land of Investments” and the biggest property market in the world. This tax-free port is globally recognized as an International business and re-export center and more and more tourists who visit Dubai decide to reside there when they experience the sound economic growth, stability and infrastructure of this Gulf Emirate. This multicultural city draws expatriates to start their own business capitalizing on the friendly tax free policies and invest their money on properties and real estate as they foresee quick returns. Construction of high rise buildings and apartments are booming and the price of these in the plusher areas are sky rocketing. As quickly as they are constructed, there are buyers ready to buy them.
Luxurious condos and high rise apartments are available for the rich either overlooking the ocean or built on the waterfront. A Dubai tour would take you to all these extravagant playgrounds of the rich. Leasing property is an interesting option though many foreigners who travel Dubai find it an extremely difficult task to purchase the right apartment or villa as the choice is stupendous.
Areas like the Walk, Jumeirah, Executive Towers, the Bay Avenue, and Business Bay are all coveted areas as apartments, condos and villas are being built as large property projects.
These properties can be rented out weekly or monthly as the case may be. To get the best deal it would be worthwhile to make a Dubai tour and inspect the properties personally before opting to buy one.
There is speculation today that by the end of 2009 there could be many properties that could remain unsold and unoccupied. Analysts predict that property prices will hit the lowest from July onwards this year. With constant layoffs, homeowners are finding it difficult to make their payment installments as a result of which the price index is being further pressurized. How far the property prices could drop would depend on how restricted the supply would be in relation to the demand. A Dubai travel trip indicates a 50% drop in price in places like Downtown Dubai and Palm Jumeirah where prices were soaring high just 6 months ago.
A visit to Dubai in December 2008 when property prices dropped by 23% would have revealed to the visitor that the price drop for villas was more than those of apartments. As more job layoffs ensue, property rents also lessen and transactions are not being made as rapidly as before. The average growth rate is 4% for apartments and 8% for villas according to reports for 2008.
While the government is making every effort to revitalize the mortgage market, the disadvantage of no visa guarantee is also posing a problem for investors who would like to ensure their residential rights when purchasing a property on their Dubai Travel. The financial policies intent on preserving liquidity has helped the buyers face the global economic credit crunch to some extent.
The builders are however not fazed with the global economic downturn which they say will resolve itself in the coming years. The demand for property in spite of layoffs is still more than the supply. Therefore at the most, builders will just delay the completion of their projects for a while and then continue with their plans.
With regard to the leisure industry, optimism is the keyword though many hotels have had a slight slump in the occupancy rate. The influx of tourists, who regularly visit Dubai, though less frequently in the recent past, has maintained the occupancy rates in most hotels as the demand for rooms is still high. Though not as lucrative as the earlier years, they envisage a full occupancy by the end of next year as they claim this is just a “cyclical market” where a “correction is going on”.
To sum up, a Dubai tour indicates that the real estate and property boom has reached a temporary plateau and the knowledge that this is just a phase gives the builders an added impetus to hold on to their projects, maybe delay a bit, but certainly continue with them.