A Study on Dubai’s Property Market

The property market in Dubai is always in a state of flux. The most sought after question in the minds of investors, realtors and developers alike is what would be the scenario of Dubai’s property sector in the days to come. There are a number of factors that affect the property matrix at a given place and Dubai is no exception. Following is a study on Dubai property market which will attempt to throw some light on the present and future state of affairs in this regard.

The most prominent factor that has influenced property sector in Dubai is the supply-demand equation. At present, a large number of property units are under construction in Dubai. At the same time, there is an ever-increasing demand for all kinds of property units in the emirate. Dubai property boom has been the talk of the town ever since the inception of the freehold property law.

Types of investors tapping Dubai’s property market:

• The large number of properties available in the market attracts investors wanting to get some quick returns.

• The constant inflow of jobseekers to Dubai accounts for expatriates always on the lookout for residential property in the emirate.

• Tourists drawing towards this booming holiday destination wish to have a comfortable living experience.

Property developers in Dubai are constantly vying with each other to offer attractive launch prices. The availability of property units in state of the art projects like The World and The Palm has transformed Dubai into an investor’s dream come true.

Increase in demand means increase in prices. Investors in Dubai property market have got great returns to their investment, which in turn has acted as a catalyst in drawing more investors. Consequently, there has been more demand of property in Dubai and so on. It is in cyclic fashion that the Dubai property market moves.

It is not an unknown fact that Dubai is a luxury holiday spot and a bustling business hub on the global arena. This has spurred on demand for property in the emirate. Since the supply lags behind demand, any property that arrives on market shelves sells like hot cakes. And for a hot price too!

The other major factor besides supply-demand dynamic is delay in the delivery of property. In more instances than one, property units in Dubai have been under-construction for longer than estimated. This creates a further pull in the already stretched state of Dubai property market.

Drawing all points together, one can begin looking at the silver lining to Dubai’s property clouds (ahem). A lot of property projects in Dubai are nearing completion. In other words, there will be a sudden increase in supply in the months to come, which in turn will bring property prices down. But again when all this again increases demand, the eventual state of affairs will be largely guided by how Dubai property market will even that out with even more supply!

Time will tell… but it is certain that Dubai will remain a hot spot for property buyers from all over the world. With new rules and regulations providing for safer deals and a strong value of a number of foreign currencies, investors will continue to look out for opportunities in Dubai.