Saturday, 03 October 2009

  • What are the key factors necessary for the recovery of the Dubai property market?

       The global economic turn down has substantially affected various communities and industries throughout the world. There is no doubt that the construction sector and the real estate markets have suffered some of the most sever blows and need special measures to recover. The financial sector has also been hit, which has made it even harder for possible improvements to take place due to restricted financing. Some rapidly developing construction sectors markets such as the one in Dubai are now facing an even tougher challenge with many large projects being on various stages of development and lacking the necessary investments to continue. Experts have suggested various measures that need to be adopted on different levels in order for the Dubai property market to recover and regain its positions.

    The main problem recognized by the majority of investors that exists at present is that there is no sufficient clarity about the situation in the Dubai property market as a whole and about the development of most projects. The confusion is further enhanced by the lack of information on the advancement of widely advertised projects in the past, some of which are still in the planning stages. Both investors and experts conclude that there are available funds for substantial investment, but the uncertainty and higher risks in the unstable situation are the reasons for large and smaller scale deals being put off. At present there are not substantial factors and beneficial moves that can adequately offset the risks. 

    The extensive consolidation of various companies participating in the construction sector in the emirate as well as key players in the Dubai property market is supposed to bring stability. The reliability of the projects and the trustworthiness of developers are meant to be improved by these major moves. In turn, the investors’ confidence should be regained as the first step towards the industry’s recovery. This is an adequate step, but the mergers and acquisitions taking place might be a disturbing sign as well. With the recovery of the global economy and the increase in the demand for real estate worldwide, fears of artificial inflation of the prices are becoming more evident.

    Most experts agree that the local government has to step up and aid the Dubai property sector following the successful example of major economies such as China. The lowered interest rates seem to be working, but not giving the desired large scale results with the lender funding increasing slightly in the past financial period compared to the booms experienced previously. More direct actions are required – the direct subsidizing of developers and investors is one of the most beneficial measures that can be adopted. The expert analysis also considers Dubai to have a relatively sluggish and robust regulations concerning property investment. Despite the efforts that have been made in recent years, more incentives and clear, quick and effortless procedure are required to attract more international investors. 

    Overall the key factors necessary for the quick and complete recovery of the Dubai property market are the greater business as well as consolidation transparency and the adequate measures taken at state level to support the industry.

Friday, 14 August 2009

  • The Lucrative Opportunity of Investment in the Properties Sector of Dubai

    The cost of estate is uphill every day and the reason is the increasing number of tourists. The renting prospects of a home in Dubai are on the rise as well, with a firm improvement that is becoming the major basis for many to look for real estate in Dubai.

    Being one of the fastest growing cities on the globe Dubai has become an outstanding option for investment in real estate. It is one of the prime holidaying destinations for tourists from all around the world with money being not an issue at all. This is the reason for the boom on Dubai real estate market with prime locations being sought after for hotel and resort construction. If you are able to invest in Dubai properties, you will be able to reap its prospects.

    One of the key topic which currently is a reason for trouble is the problem of overly expensive costs of real estate property in Dubai. This is because the construction industry has been unable to supply the market with new property fast enough to cover the demand. Estate in Dubai are being bought quickly and later sold again at a huge sum and much more than its original cost making somewhat tricky to quote the concrete price of the estate. Therefore it is more intelligent to seek the help of experts in the field of property in Dubai before you go for a piece of estate in Dubai.

    There is a large inequality with concern to the comparison between the ease of renting houses and apartments in Dubai. The division between all the types of landed Dubai property has been falling short as compared to their demand of the number of villas as opposed to availability of the apartments. The piece by piece area and the amenities are the important basis why those companies interested in property are making more noise for very tall apartment buildings instead of villas.

    If you are trying to locate a good bargain for investing in property then you could opt for the Jumeirah Beach Residence as a property in Dubai. It is one of the finest places to live and location for business property as a venture of the globe with on which the expenses incurred of almost 1.1 billion Euros. There are many hotels around the place in spite of that investing expenses in JBR is one of the most intelligent investment choices to make from the purview of property in Dubai. From the point of view of Gross Domestic Product, the industry of developing property and the market for estates in Dubai has displayed immense development in this short span of time and it looks like it will only improve.

    You can make a real fortune by simply renting your real estate in Dubai. The annual income from rent at present in Dubai is around 6 to 10% of the total property value. This will eventually grow over the years, which means that you do not even need to sell your property in Dubai to make a fortune. A simple rental scheme will suffice and will reap in the benefits that you have been planning to make from it.

    Make sure that you do a good background research about the property that you are going to buy in Dubai as sometimes due to the high demand the chances of overpricing of property becomes a major issue in Dubai. However, rent or resell, you can make a good profit from your real estate in Dubai as a long-term investment because the prices of these properties will surely raise in the next few years. According to market analysis and survey by economists, the growth percentage of property in Dubai is estimated at ten percents annual rate.

    Make sure that the region in which you are buying your properties has growth potential. The value will surely rise for a building or apartment if it is near a shopping mall, hotel or resort. The real estate sector of Dubai is a wise option now for investment. Even if you are buying the property with the help of a loan, the rent that you are going to receive for your property in Dubai will pay for it quite conveniently, and before you know it, you will be making a huge profit from your property.

    Dubai has not escaped the global financial crisis and the cost of property have dropped dramatically in Dubai. The situation is calming lately with the perspective of properties prices stabilization starting from September 2009.

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