What to Expect in Dubai’s Property Market in the Long Run
The economic recovery of Dubai was underlined in the 2013 annual report provided by the Dubai Chamber of Commerce and Industry. It was revealed that the GDP increased by 5 percent in 2013. Exports and re-exports also increased with its members growing by 8 percent.
The Present Property Market
This gave fuel to the local market and the house prices increased. The truth in such a situation is that house prices really tend to go up within open communities with many growth prospects regardless of the interventions. Mostly the solution is for the population to live in smaller homes. In Hong Kong and Singapore, it is often called the shoebox syndrome.
Dubai’s middle class don’t live in shoeboxes. They have spacious homes like those in Australia and the US. Things are going to change further due to the many changes done by UAE government towards the Expo 2020. Sheikh Mohammed bin Rashid Al Maktoum, vice president and ruler of Dubai, issued decrees that will help accommodate 20 million visitors of the Expo 2020.
Expected Changes in Dubai
This means that there will be more hotels on top of the 109 projects that are still being constructed. The Emirates Airlines will be expanding its fleet of super jumbo aircraft to 90 plus. The house prices in Dubai are expected to become aligned with those of the top cities; hence it is a conservative estimate to forecast a doubling or tripling of house prices in the gulf country.
In the short term, higher global interest rates and government measures will be able to calm things down and provide a mild correction to the current market state. The best thing to do according to experts is to rotate out of the undervalued homes in many other large cities like Hong Kong and Singapore and buy properties in Dubai instead.
The Right Investments
The best choices would be buying properties in the Palm Jumeirah and Downtown Dubai. The serviced apartments that are developed by Damar and Emaac sell well and they prove to be a huge winner. Always take a shrewd perspective and long-term view of Dubai real estate it’s likely that you will earn a lot and enjoy an exceptional lifestyle. You can check on the recently launched property from Al Barari the Seventh Heaven Sky Villas. This is a high-end eco-oasis community that features 157 homes within 2,000 to 6,000 square feet which is priced at a relatively modest $820,000. This is less expensive in terms of global hub cities’ standards.
Find out more about Dubai real estate and how to fair well in the field by visiting HBS Dubai.