There has been a whole lot of speculation, since quite some time now, about the recession hit nations around the world, which started from US’s housing and banking sector. It didn’t take time for it to envelop the Middle East, especially the Dubai stock market. There has been a negative trend in the emirate which also originated the news about Dubai Government refusing to bail out Dubai World, of its debts. Because of this several nations believed the emirate of Dubai is heading towards bankruptcy, as the emirate has stretched itself financially to become a world-class tourist destination, which was beyond the deep pockets the emirate had.
The thought is inevitable when, in the emirate you see the world’s tallest building, the most expensive hotel, lavish villas and apartments reflecting the investments are such expansive projects. In the meantime, the Dubai real estate market also saw a falling trend where the projects were put to a halt and several expatriates and workers left the country in haste.
However, did you know Dubai is one of the top reserve holders of foreign exchange, which gives it enough ability to sustain itself and withstand any crisis? Also, few in the world know, Dubai World has the capacity to settle its own debts if it sells its property assets and companies around the world. Abu Dhabi has, also, come forward with US $10 billion, to assist Dubai World pay its debt, which has pumped energy in the Dubai stock market and investment in Dubai is now looking more optimistic. Recent estimates shows, 67 percent of projects have been restarted.
Several experts have their views about, if this is an ideal time to buy property in Dubai or not? Some analysts suggest, the decision of investing in Dubai property would still have to wait and watch the market trends. It also depends on the type of property a buyer is looking for and the place of investment. The marina apartments and villas are still experiencing the rising prices. On the other hand, city apartments and hotel outlook have not been talked about much, the job slash in the emirate has led to the oversupply of Dubai rental units and rents have dropped in favor of the tenants. Therefore, Dubai rentals are most affordable, because the owners had to get a better deal in, when a mass of immigrant workers in Dubai, left.
The analysts believe the developing projects would be completed by the end of 2010 and the apartments available would be 33% in oversupply as compared to 10 to 16% now. That is the time, when it’s ideal to invest in buying Dubai property. Some analysts offer their view on holding on till 2010 mid-summer, when the trends show, the prices are at their lowest. But all real estate analysts say, a rebound will occur in 2011, which has to be waited for.
Amit Goyal is a Real Estate Broker working in Dubai and is leading expert in the buying and selling of Property. He is running a leading real estate portal in Dubai. For more info on Dubai Real estate visit www.PropertyAdviceDubai.com
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