Property Rates in Dubai

The National Bank of Dubai keeps a close watch on property in Dubai. It indicated in 2006 that the inflation rate is around 18-20%. The rates of property in Dubai are being controlled for a sustainable development in the emirate. Every factor contributing to the increase in rates of property in Dubai is monitored. Allied utilities like gas, education and healthcare have also been responsible for inflation of property in Dubai No cause to worry even if it increases, as the growth of the economy is being controlled by a cautious government. Not to forget the rates of property in Dubai are tied up with USA Federal Reserve rates.

Working class families will feel the pinch in increase of the rentals of property in Dubai. If they are to buy another home, they need to work out the lending facilities before investing in any property in Dubai. This will mean that only the genuine buyers will look at developing projects, not any type of property in Dubai. Some people prefer rentals rather than buying property in Dubai. Will investing in real estate be lucrative? Yes, if other factors are taken into consideration- like loan facilities and a promise that the property in Dubai will always appreciate. Foreign buyers are still expecting some rules to change in their favor for purchase of property in Dubai. Those getting high rentals for their properties are likely to invest in a second home making a good property in Dubai. There is no fear right now of the real estate bubble to burst due to any inflation or high rentals.

Rates of some property in Dubai districts will remain high. The Palms, Jumeirah, and The Golden Mile are already getting good re-sale value. These completed projects are high-quality property in Dubai. Home buyers realize that home investment is long term and needs more planning over the years. Rates of property in Dubai will go up, mortgage will increase and inflation will double. Dubai government is learning from the western economies where rates of property in Dubai have been dictated by various factors. They can avoid the pitfalls of property in Dubai going sour.

The rates of property in Dubai differ with central air conditioning and non central air conditioning. In Sheikh Zayad Road, rates are about 38 thousand – 48 thousand for studio apartments to 100-120 thousand for 3-bedroom apartments. In Riggah & Muraqabat, Naseer Square, Abu Hail around 33 thousand-25 thousand for studio apartments. The rates are in AED currency and are likely to change by 2008. There is construction activity going on all property in Dubai. Labor from all over the world is being hired to speed up all development of property in Dubai. Big developers like Damac Properties, Emaar Properties, Al Nakheel Properties, Sabah Real Estate Group, Tanmiyat, Estithmaar etc are changing the Dubai skyline with many skyscraper projects being sold in the construction stage. They are also participating in real estate exhibitions to showcase their properties outside Dubai to invite more buyers.

Final Tip: Sometimes negative property rates are good indicators for buying.