What property Dubai has in store?
The immediate future of Dubai real estate is a contentious issue. Some enounce it as an amendment phase while others believe it is a fanfare with escalating transactions. However, the economists all over the world have diverse stories to tell. Let us account a few of their opinions.
Deyaar is an Islamic Dubai Bank with declamatory public offering of around $877 million which is the largest in UAE so far. Zack Shahin, CEO, Deyaar in an interview with the Gulf news remarked that there was a monthly influx of around 60,000 people to UAE in search of new jobs. And even if the government take account of 10 per cent of this influx being the potential residents in Dubai, there was a need to add around 70,000 property units each year.
A chief question that pops-up is whether the demand and supply in Dubai real estate sector are in same strata or different? As per records, the stipulate of households is more by people of low income group. But Dubai real estate units under construction are mainly erected for middle-to-high income groups. Hence this institutes an awkward situation in the real estate Dubai market where there is both demand and supply, but they are not able to gratify each other.
Nevertheless Dubai real estate has persuaded the economists and even the cynics that the real estate market would not demise rather will continue to thrive with astounding results.
Dr. Thorniley remarked: “I don't see a bubble in Dubai. It is more like a plastic ball that will let a little air out but it will not explode. But no economy booms forever.”
He suggested that the Dubai real estate market has adequate diversification with the placement of about 80 per cent Fortune companies here. Such variegation would set Dubai as an idyllic pedestal for sustained economic growth.
No documentation can, however, be maintained about all those corporations who fancy entering this podium of transaction and commercialization.
The policy of Dubai real estate sector has always been to construct first, i.e. supply to acquire demand. This is one key reason for envisioning future to be an arduous task. Though real estate Dubai has always targeted itself for investors and traders, there has been no specific objective other than augmentation. Property Dubai is a cash-driven market where the prime motive for every trade, transaction and dealing is profit.
Although Dubai city is prefigured to continue its boom, there is still a agnosticism involved about discrepancy in demand and supply pattern. Will they booth grow to satisfy each other or will they take diverse directions leading to an ultimate collapse of the market? These few questions are yet unanswered; only a prognostication can be made about them, though nothing can be said with surety. Let us leave some decisions on future and wait for time to decide the outcome.
Deyaar is an Islamic Dubai Bank with declamatory public offering of around $877 million which is the largest in UAE so far. Zack Shahin, CEO, Deyaar in an interview with the Gulf news remarked that there was a monthly influx of around 60,000 people to UAE in search of new jobs. And even if the government take account of 10 per cent of this influx being the potential residents in Dubai, there was a need to add around 70,000 property units each year.
A chief question that pops-up is whether the demand and supply in Dubai real estate sector are in same strata or different? As per records, the stipulate of households is more by people of low income group. But Dubai real estate units under construction are mainly erected for middle-to-high income groups. Hence this institutes an awkward situation in the real estate Dubai market where there is both demand and supply, but they are not able to gratify each other.
Nevertheless Dubai real estate has persuaded the economists and even the cynics that the real estate market would not demise rather will continue to thrive with astounding results.
Dr. Thorniley remarked: “I don't see a bubble in Dubai. It is more like a plastic ball that will let a little air out but it will not explode. But no economy booms forever.”
He suggested that the Dubai real estate market has adequate diversification with the placement of about 80 per cent Fortune companies here. Such variegation would set Dubai as an idyllic pedestal for sustained economic growth.
No documentation can, however, be maintained about all those corporations who fancy entering this podium of transaction and commercialization.
The policy of Dubai real estate sector has always been to construct first, i.e. supply to acquire demand. This is one key reason for envisioning future to be an arduous task. Though real estate Dubai has always targeted itself for investors and traders, there has been no specific objective other than augmentation. Property Dubai is a cash-driven market where the prime motive for every trade, transaction and dealing is profit.
Although Dubai city is prefigured to continue its boom, there is still a agnosticism involved about discrepancy in demand and supply pattern. Will they booth grow to satisfy each other or will they take diverse directions leading to an ultimate collapse of the market? These few questions are yet unanswered; only a prognostication can be made about them, though nothing can be said with surety. Let us leave some decisions on future and wait for time to decide the outcome.
posted by Property Reporter at
11:57 PM
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