Hi Folks
The UAE's booming real estate industry continues to undergo ongoing regulatory and property market changes, reflecting its seriousness and maturity on a regional & international level. Since the Dubai freehold property law was introduced sometimes 5 years ago the nature of the market has changed noticeably, with the first time speculators now giving way to more owner, thus resulted in inflationary house rental pressures. On the other hand UAE especially Dubai and Abu Dhabi has wealth of different property mortgage products available, real estate investors need to carefully consider payments terms, installment rates and interest rate. Behind all the glistening advertising materials, investors who are selecting either apartments or villas for living or selling, need to do their little research and calculations. They should apply every standard of evaluating real estate in UAE; like location, price, potential return on investment and most importantly property developer track records.
The latest status quo is that there is a shortage of housing because of delays in building residential homes (apartments & villas) and thus has alleviated the prices this year (2008). But the good news is that the approximately 60,000 - 70,000 new residential units will be in the market in 2009 (Landmark Properties Dubai). With this we may see the falling of soaring rental and buying prices, gradually. And by 2011 it may come down by 20%.Accroding to Morgan Stanley the Dubai Property Prices would fall 10% by 2010 because of housing oversupply. Earlier the majority of investment in real estate came from UK (like 20%) and this has slow down in recent months because of global financial crisis! But never halted the property buyers from India and Saudi Arabia, this followed by strong interest shown by Iranian & Russian buyers. As a whole driver of property growth in UAE (Dubai & Abu Dhabi) remain in place. All those who want to invest need only to be able to take the future view.
Nawaz
Landmark Properties Dubai