There is a lot of speculation and assumptions flying all over the Real Estate market skies in the UAE. It seems like everyone wants to tell the same story to gain recognition and for personal branding.
Some experts even speculate a bubble burst and expect the market to crash like 2008, but that not may be what it seems. Stating the fact that sales transactions have slowed down and the prices are expected to soften, these are not indications of the real estate market bubble bursting but the result of the efforts done by the Land Department which seem to be bearing fruit and the market has entered a self correction phase and will be more stable and fruitful for investors in the long run. The Real Estate market in the UAE is now more mature and different than what it was during the crash in 2008 when the market was based more on assumptions than figures, also the market looks healthier and less vulnerable to a crash by joint efforts by the government and developers. There are now less developers and these reputed developers are able to control supply-demand and pricing and keeping oversupply at bay not leaving any scope for sharp swings. Also the increase in the transaction fee and a cap on lending has strengthened the market to a higher level and market is less shaky this time. Following the current trends of population and tourism growth, demand is set to remain healthy keeping the market stable.
There are a significant number of apartments to be released in this year which is expected to be absorbed by the growing number of new jobs being created as there will be demand for Dubai apartments for sale and rent from the expatriates coming into the country to fill the new positions.
While oil price drop and currency volatility is expected to get worse, these factors are not going to have a direct effect on UAE property market as Dubai is a hub for economic activity in the Gulf region and the current oil price slump will not slowdown growth. Dubai has a close watch on the current oil price slump and the UAE has built up fiscal reserves which are expected to help the government to keep spending heavily, keeping the economy at a safe distance from the reduction in oil revenues.
So the impact of oil price reduction is going to hit the minds of the people and not actually the economy. The lower oil price will increase wealth in other countries and lure investors to Dubai property market from countries like India and china.
The fact is that investing in Dubai can gain more yield that New York, London and Singapore and there are enough reasons to invest here, political stability being a major one. Dubai has planned Mega projects to be built in the coming years which are going to add more feathers to the cap as Dubai is recognized as a major tourist destination.
Now is a good time to invest in Dubai as the old Oracle advice “buy when everyone else is selling” has proved to be prolific for Real Estate markets around the world. There are major factors to consider investing in Dubai Real Estate in 2015, some of them listed below:-
-Joint efforts between the government and developers are keeping the market regulated.
-Figures predict investing in Dubai yields more gains than other property markets.
-Demand for residential property following Expo 2020.
-Growing population and tourists will keep demand growing.
-Oil price slump can strengthen economies in the rest of the world and some of the money will make its way into Dubai Real Estate.
-Oil revenues do not flow directly into Gulf real estate markets.
-Political instability in other countries is causing people to make UAE their home and invest here.
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