Dubai Property Price Trend – Property Analysts with Divided Beliefs

The impending slowdown of Dubai property sector is something analysts are having a divided opinion about. One group of property experts believe the boom in Dubai property sector will slow down around 2014, while others opine it will cool off within 2 years from now.

According to a Dubai property sector report, the prices of residential units in Dubai will reach their zenith in the year 2008. After that, the supply of homes will exceed demand and hence, property prices in Dubai will possibly touch their nadir by 2011. It is estimated that there will be a dip of about 15 to 20 percent in Dubai property rates.

According to local property analysts, however, Dubai property rates will keep on soaring for another 7 years or so because of a number of factors:

• Property construction delays in Dubai

• Limited supply of new housing units

• Increased demand for Dubai property among foreign investors

• Falling price of Dubai currency – AED (popularly known as Dirham)

According to another assessment of Dubai property, around 181,000 units will be in demand in the coming three years or so. At the same time, only 175,000 new units will be made available in the Dubai property sector by 2010. Thus the demand will exceed supply and consequently the property prices will continue to rise for some more years.

Dubai Property Prices – Scenario until 2010

Property rates of residential units in Dubai are all set for a downfall, but only in 2009. Due to a slow pace in the coming up of new property projects in Dubai this year, the impending plunge in property prices in the emirate has been delayed. In the current scenario of Dubai property market, the residential property prices will soar to their zenith, possibly by the later half of 2008 before falling down. In other words, the prediction made by Dubai property analysts last year that property rates in Dubai would fall in 2008 has been put off for another year.

2007 has been a slow year in terms of the number of completed projects handed over in the Dubai property market. Of the estimated 57,000 property units due to be completed, only 11,000 have come up so far. The supply-demand ratio of residential property units in Dubai has to be revised in order to accommodate the estimated 25,000 residential units for 2007, 64,000 for 2008 and 68,000 for 2009. The demand for residential units in Dubai has been on the rise and will continue to do so in direct proportion to population growth in the coming years. By 2010, the population of Dubai will be around 2 million and to meet this demand, on an average 45,000 housing units are required every year.

According to Dubai property market analysts, property rates will soar by 10-15 percent and 5-10 percent in 2007 and 2008 respectively. By 2009, property prices in Dubai will begin a downward journey resulting in a cumulative dip of 15-20 percent by the year 2011.

Having said this, a lot depends upon the delivery of completed housing projects in Dubai property matrix. Moreover, the much talked about property boom in Dubai is expected to continue at least until the end of the decade.

Dubai Commercial Property to Multiply Threefold

Commercial property in Dubai has a 20 percent turnout at present. This is way high in comparison to the global average of commercial property yield of 6 percent. Dubai property analysts opine that by the year 2010, the high yield will show a downward trend as the expected growth in commercial property units in Dubai is threefold than the present status. Consequently, the yield may even touch the global figures in some years from now.
Dubai commercial property at present has no liquid secondary market and the high rental yields on commercial units in the emirate are due to the selling prices of developments underway in Dubai property market. For a short while, as the demand is outstripping supply of commercial property in Dubai, there will be a boost in the rents.
There has been some sluggishness in the expected increase in rentals this year due to a delay in the completion of commercial property projects in Dubai. However, some parts of Jumeirah Lake Towers, Sheikh Zayed, TELCOM and DIFC are due to be delivered in the property market by the end of 2007. This has been a sustaining force in the Dubai commercial property rental rise.
Today Dubai is hailed as one of the most expensive business cities in the world wherein the average rent for Dubai property amounts to 89 dollars per square foot. With more and more commercial units expected to hit Dubai property market in the coming years, this average will also decline. At the same time, it should be noted that the average of 89 dollars per square foot is quite low a figure when compared to that of other international cities like Moscow, Paris and Hong Kong.
Office rents in Dubai have increased by 40 percent year-to-date. At the same time, the occupancy rates of commercial property units in Dubai are approximately 99 percent. The commercial units in Dubai property market have gradually acquired a crucial role that even old Dubai has witnessed an increase of about 36 percent in commercial rents. At the same time, commercial rentals in new Dubai have increased by 45 percent.
The main reason behind a higher yield by Dubai commercial property units is that while the cost of freehold commercial units has increased, the selling prices still remain at the lowest wrung of the ladder among business cities. So the average figures come at around 400 dollars per square foot, making the rental yields soar up to 20 percent as against a global average of 6-7 percent.
In both old and new Dubai, new Grade A commercial property units have come up recently. The commercial capillaries of the emirate are finding their way into newer locations. Units in off-plan developments in DIFC, Jumeirah Lake Towers and Burj Dubai are being sold for 17 percent higher prices as compared to figures at the beginning of 2007.
All in all, it is a boom time for Dubai commercial property market. At present, at least.

Buying Residential Property in Dubai – Things to be kept in mind

Thinking of buying that dream house in Dubai? Here are a few guidance tips that will be of help for residential property buyers in Dubai as the property market in the emirate is on the fast track.
• The most crucial factor is taking help from a reputable property agent/ real estate agency. Take advice from friends, family and local acquaintances if you are new to Dubai.• Have a clear idea of your property needs and budget and share it openly with your property agent. S/he will be able to guide you properly if these factors are known beforehand. This will save you time as well as heartbreaks later on.• Do a thorough research of the property market. One should be well conversant with property rate trends, locations and comparative property values therein. • Have a clear idea of the use you’ll put the property to – whether as a house or as an investment. This will have a direct impact on the location and type of property you’ll be buying. • Have your lifestyle and everyday routine in mind if you are buying residential property for personal use. A community near a good school might be more useful to you than owning property in a remote suburb. On the other hand, having residential property within easy reach of local markets is desirable if you are planning to rent it out.• If you are buying property for investment purposes instead of personal use, explore the potential returns out and out. Internet is a good reference source for getting hold of property market trends.• If you are financing your property, take help from a financial advisor at the outset. Having a pre-approved mortgage is good. Also be prepared to pay at least 10 percent of the price as down payment in Dubai.• Always keep in mind the amount of money that will add up in the cost as property agent fee, mortgage application charges, transfer charges, registration fee and maintenance fee. • Before signing the property papers, check the actual property thoroughly. • If you are purchasing property off-plan, carefully consider all the details your consultant has acquired. • Before signing the property contract, go through the terms and conditions thoroughly.• Be prepared in advance with all the documents you’ll need.• Confirm the date you’ll be moving into your new property.
Last but not the least, have a party to celebrate your great achievement!

Dubai Timeshare Property Still Not Exploited to the Fullest

Dubai property analysts have been predicting a boom in timeshare property sector in Dubai since the last few years. Reasons attributed to the impending boom in Dubai’s timeshare property:
• Beachfront property communities• Great shopping and dining options• Geographical location of Dubai
All in all, Dubai is hailed as one of the most popular holiday destinations of the world. Consequently, timeshare property is something that has great potential when it comes to the emirate. But, the statistics from Dubai property market reveal that this potential has not been exploited to the fullest.
Resort timeshare property ownership has shown only 2 percent UAE penetration rate although it was estimated that Dubai timeshare will gradually overtake Orlando to become the world’s largest timeshare property market. This is ample testimony that the local timeshare sector in Dubai is still untapped. The main restraining force acting behind this is the absence of a proper regulatory framework to manage Dubai’s timeshare industry.
The endless possibilities of Dubai timeshare property sector
Dubai as one of the most sought after holiday destinations opens its doors to a whole spectrum of prospective buyers who want to own some property in the emirate, but do not wish to stay there whole year round. Once the rules and regulations are in place for timeshare property, it can usher in a new phase of Dubai property market boom. Moreover, timeshare property is comparatively cheaper to other options, and thus more affordable to holiday-makers.
Fractional ownership property and vacation clubs are already witnessing phenomenal annual growth world over. The timeshare property market has a turnover of more than 20 billion AED on global level. Property experts estimate 2 billion AED worth of timeshare sales per year in the Middle East region. However, in the absence of timeshare laws to protect the interests of the investor, the growth curve has not shown the expected spurt.
Rules governing withdrawal of an investor from timeshare property as well as cancellation of the timeshare contract are also required urgently. A lot of timeshare property units in Dubai are still under construction.
Dubai timeshare market is still in its infancy but in due course of time will mature as the pre-requisites get into shape.
Timeshare Property
For those who do not know or have a vague idea about timeshare property, here is the definition.
Timeshare property entails buying the right to spend a particular period of time in a holiday property.

Dubai Real Estate Vis-À-Vis Global Credit Crisis

Dubai real estate experts wonder whether the state of global markets recently can fuel the real estate boom in the emirate or dampen its spirits. August has been a phenomenal month for global capital markets as they witnessed a credit crisis. Dubai has been no exception. However, the effect on Dubai real estate market is something that still needs to be seen.
View – Dubai real estate slowdown was inevitable
Some real estate experts feel that the slowing down of the real estate boom in Dubai was inevitable, more so with the coming up of the new law that necessitates opening of escrow accounts for Dubai real estate developers. This means that the funds of off-plan buyers will only be released on the permission of the Dubai Land Department.
In this context, the global credit crunch last month has resulted in making borrowing difficult. This can have major implications for real estate sector in Dubai. Even the Dubai government, which is the largest real estate developer in the region, will now have to pay more for obtaining debt through Islamic bond issues.
Implications of soaring cost of money on the Dubai real estate sector
For real estate developers, money means a cost to be juxtaposed against the probable returns on investment on a particular project. The corollary to this is that the higher the cost of money, the lower the returns and a lesser probability of the project reaching an end.
The double impact of tight account rules and the difficulties in obtaining credit will give a tough time to real estate developers in Dubai. One offshoot of this can be a slowdown in the coming up of new construction projects in the Dubai real estate market.
It still remains to be seen whether this will have a good or bad effect on the house prices in Dubai. On the one hand, there can be a rise in the value of the present homes in the Dubai real estate market. On the other hand, there may be a dent in people’s confidence in the real estate sector in Dubai.
Steps Dubai Government can take to curb rising difficulties for real estate sector
Real estate analysts hope that the Dubai government, with its pivotal role in the real estate developments across the emirate will take prompt steps to counter the current circumstances.
A few options:
o Special mortgage offerso More focus on the rental market
The present situation being a little vague, it will take some time before the dust settles after the storm and things can be seen in a newer light. For now, all we can do is to hope the best for Dubai real estate market in the coming months.

Property Market in Dubai – Some Major Players and Property Projects

Dubai PropertiesDubai Properties is a fully Dubai government owned property entity. Major property constructions by Dubai Properties are given below:• over 40 towers of the Jumeirah Beach Residence• a colossal residential property development near Dubai Creek, known as The Lagoons• a premium commercial property development near Burj Dubai – The Business Bay• Dubai International Financial Centre
Standard Chartered BankThis year, Standard Chartered Bank has started providing mortgage for residential property developments in Dubai. It is believed that Standard Chartered is going to be a major player in Dubai property market in near future.
HSBCThe first global bank to provide mortgages in the Dubai property market, HSBC has expanded its services over the years. At present, it has included some of the top property developments in the emirate.
Tamweel and Amlak FinanceThese are two Islamic companies that provide finance for residential property units in Dubai. They are facing a tough competition these days due to the coming in of global mortgage providers in Dubai property scenario, such as HSBC and Standard Chartered.
The WorldOffering some of the world’s best premium property options, The World is an artificial archipelago four kilometres off the coast of Dubai. This property development is in the shape of the world map and is currently under construction.
NakheelA part of the Dubai Ports World, Nakheel is responsible for the state of the art Palm Islands and a number of other Dubai property developments. A major development by this company is the International City which in turn provides affordable property units.
Palm IslandsThese are a group of thee islands in the shape of palm trees off the coast of Dubai. On The Palm Jumeirah, property units are already being delivered. At present, The Palm Jebel Ali is undergoing redesign whereas The Palm Deira land reclamation is taking place.

Dubai Real Estate Developers Need Cheap Land for Low-Cost Housing

Private real estate developers in Dubai require the government to facilitate the availability of cheap land. For the much needed low-cost residential units in the Dubai real estate market, inexpensive land is an inevitable prerequisite. At present, soaring land prices in Dubai translate into real estate builders in the emirate coming up with residential, commercial and hotel projects that offer good return on investment, instead of providing mid- and low-budget real estate options. According to real estate experts, the rising inflation rates in Dubai and the eroding purchasing power of residents need to be checked at the earliest in order to maintain the popularity of Dubai on the world real estate matrix.
In this wake, the setting up of the Real Estate Regulatory Agency in Dubai has been phenomenal. The body is working on a comprehensive Real Estate Index in order to gauge Dubai market scene and propose ways to the government for regulating the present situation. In the meantime, the Dubai Urban Development Framework – a programme that will direct the urban development of Dubai until 2020 – will also attend to the emirate’s decline in terms of real estate affordability of housing units in the past three years.
The price of land constitutes about 40 percent of the value of a real estate project. The remaining percentage is represented by real estate construction costs, which have also witnessed an upward trend in the last few years. At present, Dubai real estate dynamics are such that commercial buildings give more income to real estate developers in Dubai, as compared to residential projects. The shortage of cheap land in Dubai has pressurised private real estate builders into considering development of projects in other emirates where land rates are comparatively lower. On an average, land values saw a 35 percent increase last year, while this year the rise has been of about 24 percent.
The current high price tags on land mean that the end unit is available at a high price in the real estate market so that the initial investment can be covered. Majority of Dubai real estate developers feel the government can help the present state of affairs by –a. providing land at reasonable priceb. putting a limit to property rents in DubaiFor some time now, getting low-cost housing options has been a priority on Dubai government’s agenda.
At the least, it is hoped that the soaring land prices in Dubai and the consequent skyrocketing of Dubai real estate rates will be a thing of the past in near future!

Dubai Real Estate Brokers to be ranked by RERA

In addition to getting registered and certified, real estate brokers operating in Dubai will be ranked by the recently formed Real Estate Regulatory Agency (RERA). Real estate brokers will be issued licenses and then ranked according to an official standard. This move is aimed at curbing the presence of freelance real estate brokers in Dubai.
Apart from managing media advertising related to real estate in Dubai, the Real Estate Regulatory Authority is regulating the trust or escrow accounts that have been made compulsory for all real estate developers. At present, RERA has approved five banks to provide escrow accounts including HSBC, Dubai Islamic Bank and Mashreq Bank. Dubai property developers have six months’ time to open escrow accounts. In addition, the authority will form a new department for undertaking the ongoing registration of freehold Dubai properties. RERA is building a strong real estate database so that in future a better planning can take place. Nakheel, Tameer and Dubai Holding have already signed the pre-registration contract.
RERA also has plans to design real estate training programmes to be conducted by an educational institute. The commission fees charged by brokers will be reviewed by the body. Managing real estate brokers in Dubai is part of the multi-pronged approach the authority has planned to undertake in order to streamline the functioning of the Dubai real estate sector. The body will look after the Strata Law as well – the law that oversees the individual owners’ rights in a communal real estate development.
The Real Estate Regulatory Authority was launched in Dubai on July 31, 2007. The main objective of the body is to develop a world-standard real estate market in Dubai that guarantees to look after the rights and requirements of all kinds of property investors. In addition to its regular operations, the authority regulates real estate related exhibitions, and official research and studies.
Early next year, RERA is planning to introduce standard rental forms and certify all types of real estate rental agreements. For commercial property, 3 to 5 year contracts will be introduced in the wake of difficulties with the currently executed agreements of one year term. The Rent Review Committee under the Real Estate Regulatory Authority will finalize rules regarding the landlord-tenant relation in order to arbitrate and settle rental disputes in Dubai.

Dubai Hotel Occupancy Rates Rise

Dubai hotels have witnessed a rise in occupancy rates in recent times. This has been possible due to more and more people from the Gulf visiting Dubai during summer vacations. This year a large number of Europeans also flocked to beach side property options as these offered quite lucrative deals.
In the last couple of months, there has been a significant increase in the number of visitors from other Gulf countries to Dubai. Most of the hotels in Dubai saw occupancy rates of about 80 to 90 percent this summer. A similar trend is expected at least until the end of August when the world popular Dubai Summer Surprises will see a grand finale. On the other hand, beach properties witnessed a 10 percent rise in bookings.
Factors responsible for the rise in the number of visitors to Dubai:
• Attractive shopping and family recreational facilities offered by Dubai Summer Surprises (DSS).• Lower value of Dirham as against other major currencies like the British Pound and the Euro, making it possible for Europeans to have more purchasing power.• Dubai’s rising popularity as a tourist destination across the globe.

Timeshare Property may prove to be a boon for Dubai Property Market

With every passing day, Dubai property market is becoming more and more competitive. According to RCI – the largest shared property ownership company in the world - although Dubai property still promises high returns to investors, they cannot expect drastic profits anymore. In this scenario, the advent of timeshare property developments in Dubai is one of the ways in which profits from the property market can revert to an intense rise.
Timeshare property is a kind of property based on shared ownership during vacations. Given that Dubai is a booming tourist hub in the world, timeshare property has a great potential for growth. Although this property option is available in other countries of the Middle East for over a decade, it will be a pioneer endeavour in Dubai.
Introducing this in Dubai property market some time in early 2008 could ignite the arrival of the early days of Dubai property market growth. It is estimated that around 30 developers will commence timeshare property projects in Dubai. In addition, there would be a sound legislative framework in place so that timeshare business model can be regulated as per international standards. There will also be a comprehensive set of guidelines for timeshare property business methods, procedures and practices. The rules and regulations will be finalized by the end of this year.
Investing in timeshare property is less risky as compared to other property investments as the amount at stake is comparatively lower. Research in this regard has revealed that people from the GCC countries would form a majority of investors in Dubai timeshare property.
Globally, around 5 million people own timeshare property.

Will Dubai Property Boom Have A Grand Finale With Burj Dubai?

With Burj Dubai reclaiming its status of the tallest building in the world, real estate analysts wonder whether this is another instance of something called the ‘Tall Building Syndrome’. Over the years, world’s tallest buildings have touched the skies at a time when the local markets are Hades bound. Instances abound on world real estate canvas… Some of the more prominent ones are:
• World Trade Centre, New York: This building opened just before the Wall Street crash during 1973-74.
• Canary Wharf Tower, London: This tower was inaugurated in 1990, right before the worst post-war recession in the United Kingdom.
• Twin Towers, Kuala Lumpur: The construction of these towers was completed just before the Asian Financial Crisis in 1998.
Property experts are speculating whether the 512m high Burj overtaking Taipei 101, is an indicator of impending difficulties for Dubai real estate market.
Could it be a possibility?
At present, it is looking like a possibility only. There are certain factors responsible for this:
• Oil prices going steady at around 75 dollars per barrel.• Soaring demand for residential and commercial property in Dubai.• Upward trend in Dubai property rents.
However, experts believe a time might come in near future when there is oversupply in comparison to current demand. In such an eventuality, rents will plunge and as a consequence the present Dubai property boom will also cave in.
Big bang to continue
Dubai real estate boom will continue as long as something drastic does not happen in the realty world. In any case, it is more likely to wind up slowly rather than hitting an abrupt crash. The crucial role Dubai government plays as a property developer and promoter is a primary factor in this regard.
Future Tidings for Burj Dubai
Upon its completion next year, Burj Dubai will be an epitome of the success of Dubai real estate on a global platform. Consequently, competitors will come up with still more ambitious projects. Already in the offing are a “super-tall” building by James Packer in Las Vegas, and closer home, Nakheel’s proposed Al Burj tower.
As of now, all one can do is keep one’s fingers crossed!

Dubai - World Business Leader

According to recent ratings by Forbes Global, Dubai tops the Employee Happiness Index which is based on the net cash compensation an employee earns. However, when it comes to Misery Reform Index, it comes right at the bottom of the list. This index is calculated on the total amount of tax levied. In other words, the indices are based on a comparison of the tax load on businessmen, executives and their staff. The ratings reveal the fact that Dubai is the best business hub in the world, according to Gulf News. The survey was undertaken across 50 major business cities across the globe.
According to the reports, this year Dubai has overtaken the global low-tax leader Hong Kong. It probably levies the lowest tax on income as compared to the rest of the world. The strategic location of the UAE has had a major role to play herein. At a critical juncture between Europe, Africa and the Middle East, it provides social security, political stability and economic success. In recent years, Dubai’s economy has experienced an upward trend beyond the oil and petroleum industry. The government is constantly coming up with policies that encourage international investment in a number of other industries.
France tops the misery index with a score of 174.8, followed by Belgium (158.1) and Sweden (149.7), whereas UAE comes last in the row with a score of 18.0. On the other hand, the Happiness Index listings are sub-categorized according to the marital status and salary brackets of employees. In each of the sub-categories, UAE has grabbed the ace position. The implications are clear, for a career move largely depends upon the actual pay one is getting in hand. According to the indices, one could very well earn twice as much in Dubai as compared to other business centres across the world.

Business Bay – A Lucrative Option in Dubai Property Market

Dubai is home to some of the major property projects in the world. The ongoing property developments in Dubai stand witness to the emergence of Dubai as a property hub buzzing with activity. The latest addition to the plethora of property options in Dubai that are available for international investors is Business Bay area. Recently, it has surfaced as a popular place for investors in Dubai property. Business Bay is a freehold property development which is quite close to downtown Dubai. It comprises of residential, business and retail property types. What makes it an attractive property investment is the fact that business persons will have the convenience of working and living in close proximity to each other.
One of the largest property developers in the Business Bay area, Damac Properties has recently come up with a new project – Water’s Edge. The 20-storey high property development in Dubai will have office as well as retail spaces. This property development is the ninth undertaking of the company in this area. Damac Properties is known for coming up with dynamic plans for property developments in Dubai. Some of the previous property projects from this company in the same region are XL Tower, HAZ Tower and The Corner.
In comparison with property sectors across the globe either going languid or witnessing a constant ebb and flow, Dubai property matrix continues to grow strong and steady. So much so that Dubai is one of the busiest property investment destinations in the world today.

Challenges in Gulf Real Estate Recruitment

It has been remarked time and again that the Gulf real estate sector is booming. Indeed it is but experts have unearthed a fact that will have impact on real estate recruitment in the region. One of the major real estate recruitment agencies in the region based in Dubai, Macdonald & Company has undertaken a study of real estate workers in the Middle East. The wages of real estate industry workers in the Gulf region have huge disparities. For doing the same job, real estate workers are being paid salaries that are poles apart from each other. In October this year, the real estate agency will carry out a survey on the Gulf real estate workers’ salary. A final analysis of the same will be published at Cityscape Dubai.
The real estate recruitment nightmare in the region is the outcome of overpayment by some real estate companies and a gross underpayment by others. The Gulf has recently emerged on the global platform in terms of its investment sector. A major part of the credit goes to the real estate market in the Middle East, particularly in Dubai. At the same time when it comes to employment rules, there are very few real estate ventures that have a consistent salary structure for its workers. As compared to real estate industries elsewhere in the world, this is alarming as a real estate worker in the Middle East wouldn’t know his economic position with respect to his growing professional experience. In this context, the real estate salary survey by Macdonald & Company will be a positive factor in standardizing the current state of affairs.
At present, the Middle East real estate sector is facing difficulties in the recruitment of manpower. The situation is more so grave in Saudi Arabia and Kuwait. The said real estate survey will be useful for the employee as well as the employer. It will facilitate them to have a clear cut idea of their respective career graphs. In addition to this, upon having a uniform payment structure for its workers, real estate companies in the Middle East will be able to attract a lot more talent. Moreover, real estate corporate houses in less popular regions will need to pay more to their workers. Once this happens, potential workers in the Gulf real estate market will look upon employment opportunities in this area as a profitable prospect.
Real estate ventures must take into account the gradually mounting cost of living in the Middle East. Worker salaries, particularly in the real estate industry, need to rise at a proportional rate with respect to the cost of living. Whereas some real estate sector employers do share a part of the company profit with their workers, a vast majority do not.
If one looks at it from a candidate’s point of view, there are a number of things that matter. In addition to roles and responsibilities, money is an important factor in real estate recruitment industry.

Buying Property in Dubai

Since 2002, international investors have been allowed to purchase property in Dubai. The property market is constantly coming up with projects targeted at overseas property buyers. The infrastructure of Dubai property sector as well as the larger scaffolding of Dubai economy itself is quite strong. In the last two decades, Dubai economy has seen a rapid upward trend. On an average, Dubai’s GDP witnesses a growth of about 7-8 percent every year. The capillaries of economy run deep into trade, tourism and of course the property sector. All these infrastructural branches of Dubai economy are closely influenced by international investment. With more and more foreign companies and individuals investing in Dubai property, Dubai property market is gradually taking the centre stage of economy. The most popular property destinations in Dubai are the Greens, Emirates Hills, Arabian Ranches, the Springs and the Meadows. The Palms provide a luxury option in Dubai property market.
International investors in Dubai can get hold of property on freehold as well as on 99 year leasehold. A property buyer in Dubai has to make a lump sum payment of 10 percent of the price. The remaining amount can be paid in instalments as agreed upon in the contract. One can get hold of mortgages on property in Dubai through a number of mortgage providers, the more prominent being HSBC, Amlak and Tamweel. Buying property in Dubai enables one to have access to excellent services amenities for everyday living. When it comes to the cost of living in Dubai, it is pretty high but certainly lower than the Western world. There are no taxes levied on one’s income or property in Dubai. However, a person having a residence visa has to renew it every three years for about 1,360 US dollars. But having a residence visa does not entitle one to work in Dubai.
There are certain factors impinging on the buyer interested in making property investment in Dubai. Following are a few pointers in this regard –
• Like any other investment, even property rates can fluctuate in accordance with the market. One has to know the current market scene and future trends before investing in Dubai property. • Banks and mortgage providers can change the interest rates and/ or the term of payment. This can have potential effect on one’s monthly instalments. One has to be aware of such an eventuality before taking up a property loan. So, one must be conversant with the terms of the mortgage provider. • Usually, lenders charge 1 percent of property loan amount as their processing fee. In addition to this, there are insurance and booking costs involved. One must survey the market to have the best possible option.• One has to know the maintenance costs of his/ her property in Dubai. This will have a bearing in the long run.• One must seek professional advice from reputed realtor(s) and lawyer(s).• One must have a comprehensive understanding of the advantages and pitfalls involved before making property investment in Dubai.

Parameters of work for a Dubai real estate agent

Buying a house from real estate Dubai is yet a complex job to undertake. It is vital, but engages a lot of intricacies which make it indispensable to consult a Dubai real estate agent for appropriate guidelines.
A real estate agent in Dubai is an erudite person who is well experienced in real estate Dubai transactions and possesses a great deal of local information regarding real estate properties and apartments. He is the key person to be consulted while working out for a house as he not only helps in real estate transactions but also aids the buyer in assortment of house. Being efficient in local area information he can easily match the profile of a person’s desires in the terms of house to available property in that budget.
A Dubai real estate agent knows which area will best suit his client. Also he possesses a great acquaintance about the tax system and laws involved in property dealings. He also guides the real estate Dubai buyer in terms of financial assistance where can he get loan from and which loan package would fit in his profile.
A real estate Dubai broker is an independent person who works on commission basis. He gets a portion of the total transaction money as his commission. His real estate services to the client are based on a contract. Dubai real estate agents are the salespeople who sell out real estate Dubai property of a vendor. Real estate agents in Dubai are service providers and they assist people who want to get implicated in real estate property transactions.
Dubai real estate agents also administer the real estate property for a proprietor in barter of a fees provided to him. Dubai real estate agents are the intermediates between real estate sellers and buyers of real estate in Dubai and they provide a communication channel to make the transaction process smooth and steady. Dubai real estate agents arrange meetings for their clients i.e. the real estate Dubai buyers and the sellers of real estate property in order to get the deal fixed and they also assist in finalizing the property deal.
A real estate broker is the supervisor for the real estate agents. He may work in association with other brokers to form business groups or he may hire real estate agents to work under him. He may also work as an individual real estate agent providing the necessary service to the client.
A real estate agent has to exhibit the property to the prospect buyer. He has to fix up lot of meeting with the client in order to show him the entire varieties of house fitting in his account and preference. He offers them a large variety of houses and also helps them in selecting one.
A real estate agent also has to make sure that the property lies in the budget of the client or he suggests methods for taking up loans that would be required by the client.
He suggests diverse houses as per the needs of his clients like for a property investor an area in the key location would ring bells while a family would look out for a proper built house that can sustain a family.
It is the duty of a real estate agent to decipher the needs of his client and work according to them. This is certainly an add-on in most cases.

Provisions to a buyer in Dubai property Market!

A real estate agent in Dubai was earlier a representative of the Dubai property seller. He was the ‘voice of seller’ of Dubai property that reached the prospect property Dubai buyers.
However, with the transformation in Dubai property market, Dubai real estate agents started playing a dual role. He modified from being a delegate of property Dubai seller and became a platform where both Dubai property sellers & buyers articulated their opinions and requirements. He catered to both their needs separately and provided services to both parties.
While talking about the services to property Dubai buyers, he had a significant role to play. For the Dubai property buyers he is a person who embodies the property Dubai seller and vice versa. Hence, all the transactions that take place function through him. He is not just a person but also a media who aids in accomplishment of property transaction in Dubai real estate market.
A real estate Dubai agent acts as a guide to the buyers of property Dubai who assists them from finding house to finalizing its deal. He is like a consultant hired by property buyers in Dubai, who briefs them about all negative and positive aspects of a house.
To begin with, a real estate agent in Dubai hunts for a property in Dubai that harmonizes with the predilection of the property Dubai buyers. He assures, it goes with property buyer’s financial statement and exclusive conditions they specified. A Dubai real estate agent takes care of the penchant of the property buyers be it the locality, specification or alike.
A real estate Dubai agent then exhibits them all the accessible property for sale that complements their preference. It is his job to make the Dubai property buyers sentient of the favourable and unfavourable points of the house in Dubai. He also makes them familiar with the surroundings, neighbourhood, and other amenities available in that area. In short, he provides them a summary of the house they are looking for in Dubai property market.
After a property in Dubai has been finalised by the property buyers, a Dubai real estate agent makes sure that the house lies in the fiscal affordability of the property buyers and if they need any assistance about loan, he is the one who guides them with all feasible ways to hire a loan for their house. He makes sure they are comfortable with the payment module and can incur costs easily. For this aspect, a real estate agent in Dubai might also seek help of a mortgage professional who checks if the buyers are competent monetarily and can afford real estate property in Dubai.
Apart from this, a Dubai real estate agent also confers the price of apartment to seek a balance that fulfils both the property buyers and sellers requirements. He might negotiate the price in favour of the buyer of Dubai property if the seller permits him that margin in property price.
Lastly, a real estate Dubai agent prepares a document finalizing the covenant of the house and does all the paper work for both the seller and buyer of Dubai property. A Dubai real estate agent must be law erudite for this job and he must be well versed with the edicts that deal with property transaction in Dubai.

Expanding prospects in Dubai property market with shrinking world.

In this new era of globalization, there is an advent of new technologies. Interaction has increased and the world has shrunk in terms of communication gap. The Dubai property market is supposed to have experienced a major boom in such a case. Real estate Dubai has transformed completely and has become a pedestal for Dubai property transactions all over the world. The property Dubai market has broadened their horizon to international markets. With this a major transmutation has emerged in the work of a Dubai real estate agent.
The new internet age has brought with it a new range of prospects. Millions of customers can approach the Dubai real estate market easily. Here arrives the work of a property agent in Dubai in assisting the property buyers. With further progression in the real estate Dubai business, a Dubai real estate agent has to become more conversant and well versed with the property Dubai market.
The prime reason for the rising necessitate of a property Dubai agent is the seeping in of globalization of the property market. With this people invest in international property about which they do not have much of knowledge. They need a lot of assistance and guidance in terms of location, monetary value and future prospect of the property.
Everything from finding a suitable property in Dubai to corresponding it with the needs of customer, from a legal advise to assortment of Dubai property, it all is undertaken by a real estate agent in Dubai. A Dubai property agent is a real blessing in such cases. He not only guides the property buyer rather becomes his representative in overseas.
An international property market is envisioned as a potential of revenue collection by the real estate agents or property agents. They have extended their functional area to international traders and expatriates all over. Dubai property agents have actually transformed the services provided by them to suit the international clients. The real estate agents in Dubai have carefully worked over this area and have developed few incentives to market their services. Although it is the government which decides the fate of immigrants in a city, still a real estate Dubai agent provides some exclusive enticements to his client in order to attract them and provide a better service in the real estate industry as compared to their competitors.
There has been a steep increase in real estate Dubai & property Dubai ownership in the last decade. The census of 1990s illustrated an ownership of 4.4 million property units in Dubai which soared high to 12.5 million by 2000 and it continues to elevate till date. Apart from this, the foreign investment in Dubai property also depicts an abrupt rise from $38 billion in 1997 to $50 billion in 2000.
It is anticipated that the global portal will expand further in case of Dubai real estate investment and with this there will be a further need of services provided by a Dubai property agent. With this the services will metamorphose to draw more clients and to assist them better. A real estate agent in Dubai will soon become an obligatory part of Dubai property transactions.

Assistance to property seller in Dubai!

A real estate agent deals with the sale and purchase of the property. He abets both the Dubai property seller and property Dubai buyer in their work. A Dubai real estate agent is an almanac designed for property in Dubai. It is not merely the consumer in Dubai real estate market who needs assistance in buying a house, rather the seller also needs guidance while letting out his property for sale in Dubai. A property Dubai seller has various issues to deal with like the price of property in Dubai, its condition, advertisement; paper work etc. a real estate Dubai agent provides all the germane information to his client.
A Dubai real estate agent has a key role to play while a property Dubai deal is finalized. His work doesn’t limit to the transaction period, but extends in the pre-transaction and post-transaction phase as well. These stages are mainly applicable in case of a seller.
When a seller decides to let out his property in Dubai, first main chore of a Dubai real estate agent is to list it out for public. This instigates the procedure of property dealing in Dubai. While dealing with the transactions, there are certain regulations and guidelines set by law. They need to be pursued strictly during this progression. In most cases, it is the obligation of a Dubai real estate agent to endow his client with such a catalogue of guidelines.
A real estate Dubai agent also maintains a tab on lineaments of a property in Dubai, its vicinity and everything that could be used to puff and promote the house. He also prepares a rough layout that elucidates the Dubai property and its features mainly with the aim of advertising. He also develops the papers required for marketing through direct mailers, pamphlets and other media.
A real estate Dubai agent also publicizes the Dubai property on part of his client. He may use numerous modes for this or might restrict himself to a single mode of advertising like public relations. A few real estate agents in Dubai also organize an “open house” to showcase the Dubai property to its prospect buyers.
A real estate Dubai agent, in most of the cases becomes the spokes person of the property seller. He answers all the property related queries of the customers and he is the one to be approached whenever any kind of assistance is sought by people in property matters.
Above all sideline functions that a Dubai real estate agent caters to; his prime aim is to get the pre-eminent property deal for his client in Dubai property market. It is the duty of a Dubai real estate agent to match the worth of the house to the expected price quoted by the seller. He also has to figure out the prospect property buyer and then confer the price with him. Apart from this, he has to develop a liking for the property among the consumers. He often has to promote it and standardize it amongst the property buyers in Dubai.
Last but not the least; a Dubai real estate agent has to do the documentation of the deal finalized. He has to do the paperwork keeping in mind both his clients i.e. the Dubai property seller and the property buyer. Both the parties take assistance of a real estate Dubai agent to ease their work and to establish a communication link with the other arena.

Services offered by a Property agent in Dubai property market

A Dubai property agent is a connecting link between Dubai property buyers and property Dubai sellers. With the prime aim of selling houses, a property Dubai agent promotes the seller’s properties in Dubai, advertises them and in fact, he becomes the spokes person for them. While the focus property Dubai agent remains the selling of apartments, this is not the only service a Dubai property agent caters to. There is a wide range of services that he undertakes and accomplishes.
A property agent in Dubai acts as an analyst who draws out a stiff comparison between various housing options available for sale in Dubai property market. This is mainly for personal assistance of a Dubai property agent, and to guide his clientele. This analysis helps him in spotting the features of the property in Dubai, and hence he can decide which one will suit a particular buyer with his set of requirements. A Dubai property agent can therefore advise his customers which lodging to opt for.
An agent for property in Dubai is also a marketer of Dubai property to the prospects. He lends an exposure to property Dubai market by introducing it to the potential buyers. A property generally remains unnoticed by the customers unless someone advertises it. Here, the Dubai property agent adversities the property and develops an image through personnel selling.
An emptor seeks a Dubai property agent to guide him through this complex process of purchasing a house. The property Dubai agent acts as a mentor and endows the client with all information about the house, its locality, surroundings and other amenities available. He hence alleviates the entire transaction process of Dubai property. Along with this, a Dubai property agent also aids the seller. He gets him the best deal for his property in Dubai and facilitates the selling procedure.
While a transaction takes place, one mammoth task is the paper-work. Nowadays property Dubai agents undertake this responsibility of getting the paper-work done. For this, they have to be familiar with all the laws involved in the process. Also they need to have a command over the documentation procedure. This is a relief for both the Dubai property buyers and property Dubai sellers as they have already developed a trust factor for the real estate agent.
In some cities, a Dubai property agent is also dealing with the residential appraisal. This is a conditional situation applying to only those property Dubai agents who possess a license for appraisal. Also, if a property Dubai agent is working under some broker, the broker must also be certified as an appraiser. Both the conditions are mandatory for a residential appraisal.
Apart from these major functions, there are various other functions that an agent of property Dubai executes. One of them is property management. A multi-millionaire having stock of property hires a real estate agent who manages his property and sells them in high tide to reap maximum profit out of it.
A real estate agent also aids in auctioning property. Is he is well versed with the laws of property, he may also prepare leases, documents and contracts. However, this service is restricted to only few cities.

Real Estate agent in Dubai Real Estate Market

A Dubai real estate agent is a liaison between a purveyor and client; especially in real estate Dubai market, property agents are the bridges linking the two arenas of real estate Dubai buyers and Dubai real estate sellers. These real estate agents have a job of introducing the house, apartment, or property to the real estate consumer whether national or international. Real estate agents are business-bringers for the vendors in real estate Dubai market. Their job is not merely dealing with Dubai real estate buyers; it includes a wide array of research work on real estate Dubai market, and its execution wherever necessary.
There are a few topics with which a Dubai real estate agent must be well acquainted with. To begin with, monetary value of the property in Dubai prioritises the list. People set their budgets before looking for a house in Dubai real estate market or consulting a real estate agent. They generally start searching after they have chopped out the deals unfavourable to their finances. Hence the real estate agent should be well aware of the pricing list and must be able to advice the people the accommodation gelling with their budgets.
A real estate agent ought to have all possible information about the various options available in that area. People searching for a house in a particular locality will be benefited by this and the process will ease-out. Also it will save both time and travelling expenses.
The real estate agent is required to have a sound knowledge about the locality of the house. A succinct about the neighbourhood, market area, gymnasiums, sports complexes, schools, and parks surrounding that area, becomes a major add-on for buyers to select a house. This is because most of the real estate buyers are unaware about the surroundings as they are new to the place. This smidgeon of information provided by the real estate agent departs a sense of belonging to the buyers and it rather becomes the drawing card for that area.
A real estate agent also needs to know various types of houses available like one bedroom with a lobby and kitchen apart from a bathroom and a small balcony or a three bedroom set with attached bathrooms, a hall, a kitchen and a parking area.
Apart from proficiency in knowledge of house and its locality, a real estate agent needs to have command over the basic law mandatory for purchase or sale of a house. It becomes an indispensable need because the buyers have almost no knowledge about the paper work and hence it is the real estate agent who has to get their paper work done in most of the cases. The agent should be able to specify if there is any flaw in the previously prepared documents. Ideally he should get a new set of papers made for his customers. This enhances the reliability factor and people have a meliorated trust on their real estate agent in Dubai.
These tit-bits of information about the house, adds up to a major profit mainly because the buyers who seeks help of a real estate agent is ignorant about the real estate world. For him real estate agent becomes a mentor who guides him through this complicated yet crucial task of picking a house.

The problem with peaking prices in Dubai real estate market

In the prospering city like Dubai, commerce is booming and the prospects of the real estate market are increasing. With the advent of commercial viability, the Dubai real estate market is experiencing a high and the real estate Dubai prices seem to be touching skies. Such an elevation in Dubai real estate price raises one major question about affordability. Two-third of Dubai’s population belong to the low-to-middle strata and hence can support a household fitting in their wages, although there is a huge demand in this real estate sector, not much of construction is taking place here. The new property units are being supplied for the high stratum, half of which are used as second homes and half are being processed and sold again with the sole aim of profit.
With the major issue of hike in Dubai real estate prices, it is likely for the dealings to sink along with deteriorating interest of expatriates. To combat such a situation, Emaar properties has come out with a package of few financial deals which would reduce the burden of real estate Dubai price hike. The real estate deals are designed specially with eye on foreign traders, and the value of land overseas. This package is expected to regenerate the interest of buyers in Dubai real estate and to maintain them for a longer period of time.
One such dawn in the property business for Dubai real estate was the right to freehold for the foreign investors. This step taken by the Dubai government became the drawing card for the Dubai real estate investors and hence elevated the property transaction rates to heights.
At that time affordability was not a determinative for property Dubai as the Dubai real estate prices were dirt-cheap. But with decreasing supply and increasing demands in the Dubai real estate market, the prices augmented establishing affordability as the new determinant for property in Dubai.
It is indispensable to sustain the interest of buyers in this growth stage of real estate Dubai as once they start brushing aside, it will be an arduous task to acquire them back. An immense credit for real estate Dubai’s success goes to the expatriates who moved into this arid region to invest in property Dubai. Hence it becomes inevitable for the success of Dubai real estate to hold on to these real estate investors even in crisis situation.
Emaar has arranged special packages for real estate & property Dubai dealings. They would relieve the foreign buyers from this profligate price hike in real estate Dubai. It has also taken into consideration they key locations where the property buyers are mainly interested in and have issued laws keeping in mind all of them.
Small apartments ranging from one bedroom to a luxurious household comprising of six bedrooms are all available to anyone who is stationed in Dubai and is working with the receipt of at least six months of salary.

Expenses concealed during transactions in Dubai property

Dubai is a dreamland for Property investors all over. Its nascent commercial feasibility and flourishing real estate market proffers a blend of magnificent prospects one needs in property investments. One main reason that highlighted Dubai property was a tax-free income and the right to freehold for foreign real estate investors. However the condition doesn’t emerge that attractive after one goes through this process of transaction, reason being the concealed expenses that exhibit themselves during the course of transaction in the Dubai property market.
All the property Dubai developers and Dubai property dealers levy a percentage of service tax on property Dubai along with a share of registration fees for freehold of Dubai property. In addition to the one per cent tax that Dubai real estate investors pay to Dubai Land Department, they have to pay an additional tax to their developers or property dealers in Dubai.
With such an incursion of taxes and hidden charges in Dubai property market, the confidence of buyers in property Dubai is drooping. They feel that the Dubai property market has become less pellucid and hence one cannot rely on it. This might lead to a plunge in transactions in property Dubai. Dubai Land Department is set out to examine the aspects related to these service charges in Dubai real estate industry.
Anyone who buys a new property in Dubai has to pay a registration fee of two per cent in addition to the development fees and if this was not enough there are further administration fees and DHLs to be paid.
A property investor often feels embittered in such a case and his interest in property may dwindle. One alternative to combat such hidden costs is to increase the base price of property in Dubai initially. This would avert any hidden costs and hence won’t dig a hole in buyer’s pocket. Apart from this, a trust factor will develop between property investors and seller with the advent of transparency in Dubai property market.
A “Letter of No Objection” needs to be issued whenever one resells their property or transfers it to someone else. This letter is issued by the real estate agents or property dealers of that area and they levy an addition service tax with each term of transfer. In addition to it, there is also a percentage of administration charge to be paid by the new investor in the Dubai property market.
The service charges on property Dubai vary from dealer to dealer. Where DH of 1000 is to be paid to Nakheel International City, Emaar costs huge amount of DH 5000. Many property investors in Dubai feel that the administration and service charges are inordinate and should not be charged.
Nakheel has made it a rule that whosoever buys one property in Dubai must get it registered and ought to pay a service charge of two per cent even if the land is being transferred from one customer to another.

Whose footsteps is Dubai Property market following?

Singapore is one city where apex is the home for property prices. Although there is no pending construction project in the property market considering the uneconomic stature of real estate construction in Dubai, the property prices still manage to thrive at the peak positions.
An apartment of 1000 square feet costs about $1 million and can be leased out on $36,000 per annum which yields a rent of 3.6%. Hence the construction has doomed because of the low returns.
Though in Dubai, we get to see a completely different scenario. A 1000 square feet apartment in the Greens costs about $270,000 and can be leased out on $22,000 per annum which fetches a premium of 8.1%.
Still there are traces pf parallelism in the markets of property Dubai and Singapore. Their connectivity is at par excellence and with the huge ports, it makes world a smaller place. The finance and corporate sector is flourished in both the cities and they also share the similarity of developed tourism.
The cost of property in Dubai is one-third of the property price in Singapore while the rents are double in case of Dubai property. So is the difference in the pattern of prices in terms of property justified?
Singapore is a mature market with an experience of development in the rentals and mortgage costs whereas Dubai property is a growing market in terms of real estates. Hence the problems of over-supply seem redundant when compared to a giant like Singapore.
Dubai is more or less complying same pattern as was pursued by Singapore. To foresee Dubai in coming years, Singapore is an appropriate mock-up to espouse.
Though Singapore has had its crests and troughs during its growth, now it has established itself amongst few top cities of the world.
Dubai shows a parallelism with Singapore but it has few traces of Kuala Lumpur as well. Kuala Lumpur has elevated to greatest heights even higher than Singapore but the real estate business has been falling down for years now.
Even the price patterns in Kuala Lumpur are small with almost half the rentals as compared to Singapore. A 3,000 square feet house in Kuala Lumpur would cost around $150,000 which was the opening point of Dubai real estate.
The commercial towns have a richer assiduity of wealthy people earning a handsome salary and hence their standards of living are privileged. Their salaries can sustain high-priced property and hence can get along with inflation in estates.
Hence after analyzing few more results, it is anticipated that Dubai property market has a closer resemblance with Singapore rather than Kuala Lumpur. But it has to undergo its share of upheavals and downfalls as they are part of each real estate market.

The seasonal changes in Dubai property market

The scorching heat of summer has had its impact on the property in Dubai. Dubai Property Prices are drooping and there is no sign of improvement as of. Summer season is a major call off for investors in Dubai property as the temperature soars and most people fly overseas for a serene holiday. Hence the autumn season will come out as the decisive season to adjudicate the exact state of Dubai property market.
Many marketers anticipated a downfall in summer property Dubai market. They are the ones who would have worked out a huge profit considering the low property prices and the peaking rent rates in Dubai.
Though this is true that a property market undergoes a decline at some time and someone who predicts it advantageously before time has an added vantage of pertinence. However the disposition of investments in Dubai Property made by regular customers cannot be evaluated. Property investment in Dubai is nowhere similar to stock market.
One has to disburse a mortgage cost while purchasing an apartment in Dubai. It is a hefty sum of money to be paid over a time period of around 15 years. During the period of this finance, it is expected that property market will confront a collapse. It sounds regressive but that applies only if you sale out your property in Dubai during that time. Else one can expect good returns at the end of the finance term by either renting out an apartment in Dubai or enjoying a comfortable stay, thereby saving the rentals.
The present low in property prices, offers a perfect investment time keeping in mind the long-term benefits. Profit margin will shoot with the increasing rates along with the savings on rentals and a house of own.
Property is an ideal investment in Dubai, be it anyone. The person can stay in the house, preserve rentals; pay off their mortgages and then sale the property at a good marginal profit. In this process, he gets a home to stay, he saves onto his rentals which he would have paid otherwise, he pays the mortgage costs instead of rentals, and in the end he has a property in Dubai, which is his personal possession.
However, it is imperative to bear in mind that one should be careful while choosing a property in Dubai. The key locations always reap benefits in the end, where secondary locations might experience a down run. Similarly, a highly furnished house may have a diminutive problem placing itself as no one is amenable to pay an extra rental for it, although it costs extra to the buyers. Hence the buyers of property in Dubai must look out carefully for these minute details which come in handy while dealing in real estate business.
It is always a good option to invest in property Dubai as it will prove fruitful in the long run, no matter what the market situation is. So why not invest in a Liverpool which will increase the marginal gains with its brandishing price tags.

How will the supply of ventures affect the Dubai Property market?

Due to impediment in the delivery of property units, the real estate market was facing a set back. But Developer Dubai Properties, part of the Dubai Holding owned by Dubai Government has thwarted the rumours by proclaiming the delivery of three hundred towers in the next twelve weeks, which would mean the provision of around fifty units per week in Dubai property.
Officials blamed Dubai property market factors for the late delivery of property units which has been deferred to almost six months now. But they say, the property units are now equipped with a better furnishing and ameliorate spacing to reimburse for the delay. They also added that no penalty would be paid for this delay.
Now the marketers are keen to discern the consequence after the delivery of Jumierah Beach Residences which comprises of 6,916 property units and would be handed over soon. Will this influence the regional real estate market rates? Or will the Dubai apartments get engrossed with the inflating demand in Property Dubai?
To assess the demand and supply patterns of Jumierah Beach Residences one will have to wait until autumn. The reason for it being the time lag that percolates while relocating apartments in Dubai. The shifting of Dubai apartments, leasing them out, buying real estate, all are time-consuming processes. Another main point that would make the property market situation more apparent is the percentage of Jumierah Beach Residences used as second homes. The chances are more here considering the beach location which is nonpareil for holidaying.
The culmination of the Jumierah Beach Residences project will be an obscure situation for the real estate market because of amasses of apartments discharged at onetime. The property market will have to go through a frail stage if the delivery is made at a time when stipulate dwindles. On the flip side, another luxurious extravaganza with beachfront facade and miraculously structured is Dubai Marina. So if buyers get thwarted with the sudden supply alluding stature, there is another lucrative alternative available for them which is not fallacious either.
If at all Dubai property has to confront the commotion between demand and supply, the projects at their initial levels would be the ones facing this turmoil. The real estate prices are sure to get affected in such a case but it will depend on the delivery of some major projects and their respective demands.
Location is another crucial factor while talking about estate business. A property in key location is implausible to face demise. A perfect location compiled with a long-term investment is an arrant formula to get Dubai property business running.
Mainly, it is the underling locations that have to bear the consequences of descend in the market. An apartment in primary location continues to thrive in the long run, no matter what the market conditions might be. This is an added advantage for the apartments of Jumierah Beach Residences and Dubai Marina, as they fall under the chief locations in Dubai.

Effect of acclivity in US prices on Dubai real estate market

Real estate was a commendable attraction amongst buyers, key reason being its abject property rates as compared to different cities of the world. But now the scenario seems to be changing with upraise of rentals in the US real estate sector.
It is intriguing to know how the variation in the US property rentals affects prices here in the United Arab Emirates. The regional base rates of a property are directly linked to the rental rates in US real estate sector. Hence change in the US property price list has an impact on the property prices in United Arab Emirates.
However the local sellers in Dubai real estate industry have a decent margin in mortgage and premium. Their price of mortgage and premium diverge according to the return they seek in their transactions. For example- let us say the US Federal Funds have a base rate of one percent. Now all the banks in United Arab Emirates will have the liberty of about 6.5% for mortgage costs. It is entirely for the banks to square up its policies and the cost of mortgage.
As the situation in Dubai real estate industry doesn’t sound all that regressive, United Arab Emirates should take some steps to maintain its growth rather than to slip in the hands of borrowers.
It is adequately established that any major change in the US economy may upturn the status quo of United Arab Emirates, but if United Arab Emirates government plays its cards carefully, it is sure to thrive even with hiking price tags, especially in the real estate sector.
Apart from the change in property rentals, another factor that affects United Arab Emirates is the rate of upturn i.e. how rapid or sluggish the change has occurred. If it is a plodding change, the real estate market gets adapted and the change is no more vivid whereas if the change is belligerent, the real estate market may undergo a state of correction.
As is evident from the past, the Dubai property market experienced six of such thunders out of which four were insistent and two went on calmly. Though property market in Dubai underwent a change in both the cases, the later two were subtle.
If we define the aggressive amendment in terms of price rates in real estate Dubai, it would refer to an increase of around 4-5% within a short span of eighteen months. While a moderate change would mean ascend in prices to about 2-3% gradually over a period of time.
Dubai property is a viable commercial market with low dealing rates globally. The market is cash-driven and entirely based on marginal profits. Hence the mortgage costs won’t bother much unless the profit pours in.
However, one main reason of Dubai’s attraction amongst expatriates was its stumpy rates. Dubai real estate offers a Liverpool of facilities with fine prospects of advancement. But if the Dubai property rates increase, the real estate in Dubai might lose on its exclusive factor of inexpensive rentals. Hence the interest of investors may dwindle. Real Estate Dubai would continue to bloom until the rentals are low and once they soar high, Dubai market is likely to enter a stage of correction.

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.

The value of property in Dubai

Dubai Property market, the fastest growing commercial hub proffers a fine pedestal for all real estate investors. It is a sprout which is sure to reap fruitful harvest. There are two principal ways to invest in the Dubai property market. One is to purchase a new property altogether and let it mature, and then auction it in about 15-20 years after incurring mortgage costs. Secondly, to buy a property in Dubai even before the investor has paid the premium.
Both of them are ideal conditions for a property market like Dubai where supply of property is diminishing and the price is inflating to balance the demand. The stipulate still peaks owing to the perquisites Dubai offers. Dubai is a flourishing city with high expansion rate which makes it viable for Dubai property market to soar heights.
The Dubai city is a panorama of prospects. It offers connectivity, commercialization and luxury all at one go. Dubai is a growing city and it needs to establish itself as a potent and mature property Dubai or Dubai real estate market. It desires to elevate itself to the pinnacle in case of real estate Dubai. It certainly doesn’t hope for an unstable property market based on speculation.
But the paradox is that for a market to flourish and establish it is imperative for the speculators to seep in as they are the ones who lend an acclivity to the market. The speculation will furthermore permit sale and resale which will bid the property prices an elevation and the Dubai real estate business will take a stride towards increment. With high-ceilinged prices, proceeds will increase and hence supply would be readily accessible which would satisfy the ever-increasing demands in Dubai property market. Although both demand and supply will continue to grow, still equilibrium will be established between both of them.
Rise in the interest rates proposes to be another rectification method for the city’s real estate sector. The mortgage prices in Dubai property market are already sky-scraping and they offer a huge marginal profit. With the augmentation of rentals, the margin would contract but would allow the rentals to get immersed in the property Dubai market without any major modification in transactions.
The market of real estate Dubai is monetary based. It is dependent on the cash that flows in and out. Cash is the focal point of the market and not property Dubai. Hence the entire module of transactions, investments and trade is cash-driven. One invests in Dubai property to amplify their profits and to get hold of more money instead of their need for dwelling.
The prices of households in Dubai real estate sector are continuously escalating which propose great profit margin, hence more trade and more money. The rentals in Dubai property market are twice to that in Singapore, which is a developed city with a matured market and stable transactions.

The prospect of digital Dubai: A boon for the real estate market!

It is often asked, what defines a perfect real estate market? Is it the quantity or the quality engrossing the real estate output that matters at the end of the day? What is the peculiarity of real estate markets in other developed nations, and what role does digitalization play in any real estate sector?
The recent advancement in technology commences the concept of digital homes in Dubai real estate sector. Intel Corporation takes a step further in the techno-world to furnish a luxurious bonanza. The Hatta village in Emaar Street is entirely digitalized. It appears as if you have entered a new-fangled cosmos that is utterly operated by computers.
This novel era has a lot to offer- digital music, digital photographs, videos, games- to name a few of them. It is an inclusive pursuit package that keeps you occupied throughout the day.
This equipment involves management of the entire household with a single computer which is referred to as master computer or master control. The entire configuration is wireless and hence can be accessed from anywhere inside the house or even from the garden outside. It embarks a new phase in the luxury world and enhances the eminence of lifestyle in Dubai; an upcoming real estate haven.
One major drawback is the sophistication of mechanism which makes it cumbersome difficult to handle. A person needs to be a computer genius to use this system effectively while a person without basic knowledge of computers may not be able to use it at all.
The computer not only requires pertinent maintenance but also apposite skills to run it. Where a normal person may use the computer for his regular work, computer savvy individuals would be able to execute additional tasks.
The wireless system is certainly a windfall. One can enjoy music in their room without having to move for the system or they can enjoy playing the most advanced games which are not readily available in the market as yet.
To make people adjust with this setup, schools provide them with an early course in which the students are supposed to help old ladies in their gardening using this equipment. It not only lends a better understanding to the students but also help old ladies with the basic know-how of computers through their interaction with students.
The master computer becomes the driving force of the house and people may resent such a major change in their lifestyles. Some people are uncomfortable living in such a setup. Hence the wide acceptance of this technology cannot be concluded.
This wireless technology may be a step ahead, but the Emaar village doesn’t actually need it, considering that they are already dowered with a set of internet and cable TV wires. Consequently the wireless revolution might just prove futile. However few people do seek such an extravaganza. For all those who have a keen interest in the techno world, it is a new horizon to look for.
This is a new Intel innovation that has gripped the property market these days. With the advent of this technology Dubai real estate market seems to be evolving not only monetarily but also technically.

Regressive demand in Dubai Property: Another Factor in Demand - Supply chart

The population graph of Dubai illustrates a major elevation in the year 2006 with an accession of more than one million people. Amidst the entire population, roughly half of them are earning an adequate amount requisite to possess a middle-high class apartment in Dubai Property.
On an average a unit sustains 2.5 people that would cater to a need of twenty thousand domestic Dubai Property units by the end of this year.
Nevertheless, the Dubai property market confronted an enormous delay in the edifice of fresh property units. Last year remained feeble in terms of supply of property in Dubai. Only five thousand property units in Dubai were handed in the year 2006 which generates a void of around fifteen thousand property units. Such a scarcity in the real estate sector poses a massive pressure on existing stock of property in Dubai. Rental of property in Dubai have soar high and more people have to compress in the existing stock of property in Dubai. However it shows a vast fortification in demand for property as people still desire to own their own household or relocate to better household in Dubai land.
If we assume similar ascend in population this year, it would mean a demand of 35,000 more property units to support the demand, which would enlarge exponentially each year. But as a delivery of 50,000 household property Dubai units is expected this year, it is likely for the pressure on the property market in Dubai to ease down. Even after some delay in supply, it is anticipated that a state of equilibrium will be reached.
Though here is one key point which seeks attention, the time lag occurring between property supply and inhabitation. A margin of around four to five months percolates due to the transactions and then letting property out on rent. From the choice of property in Dubai and paying premiums to renting it out, everything takes a considerable amount of time.
Also a chunk of Dubai property has been bought as a second home by affluent traders. They are sporadically used by these traders and hence might not rent out. Apart from this, Dubai property is bought by a section of proprietors after paying full cash. Hence they don’t need any rentals to support their mortgage costs.
According to EFG Hermes Report, 139,000 units are expected to be delivered in 2008 leading to an over-supply in the market which will reduce the prices and the Dubai property market will become unstable. The property market in Dubai is in maturity stage and such a giant out stock will over flow the market making it more venerable to a state of correction.
This is an assessment which might prove fallacious if the population continues to soar high at this rate. The increasing population will alleviate the situation and will balance the demand and supply graph for property in Dubai.

Property Dubai - the Future of Real Estate

Owning a property in Dubai is like a dream for all. The Booming Dubai property market and the increased number of property agents in Dubai have provided a doorway to many national and international buyers. The demand for property in Dubai has been on a high for the past two years, and surely, Dubai property market is on a path to continued growth.
Buying property in this Enthralling and mesmerizing City of Dubai is something worth giving a thought. Comfortably perched in the northern mid section of the great Peninsula of Arabia, the Dubai city is distinctive from other emirates extracting barely 6% of gross revenue from its oil resources. Major chunk of its much desired revenue however, comes from tourism and its high-yielding real estate & property market. The Dubai property market proves to be a nemesis to that of other major cities around the globe, boasting as a dwelling place for property agents in Dubai.
Off late, Property in Dubai is fast diversifying its tentacles into the zooming property projects in circulation worldwide; better known as the Property Dubai. The boom in property Dubai is primarily propelled by its ongoing large scale investment projects in the real estate sector. Besides the already existing superb and ultramodern skyscrapers such as the Emirate Towers with the distinction of being the world’s 12th and 24th tallest buildings, the imposing Burj al –Arab the tallest hotel of Dubai property market. The esteemed Emmar Properties, a major of Dubai property market, is well on way to constructing yet another taller skyscraper to be christened as Burj Dubai with the nearby Dubai Mall which upon completion will be the world’s largest shopping mall. The ongoing Dubai property market integrates mind boggling shopping malls, resorts, theme parks, stadiums and other tourist vistas in its ambit. In gist Property Dubai market will continue to remain the future of real estate investment in the international market. Emmar Properties and Nakheel Properties constitute the biggies of the property Dubai.
Another major part of Dubai property is the inspiring Business Bay, Dubai’s new central business district and a conglomeration of about 500 skyscrapers on an extension furthered to Dubai Creek.
One of the reasons attributed to the fast emerging Dubai property is the 2002 change in land law that now allows non-nationals to own property, if not land in Dubai. Another reason of paramount importance is the availability of cheap labor from the Asian subcontinent that pumps in extra hands to keep pace with the expansion of property market in Dubai in terms of supply-demand.
Property Dubai will be a sought after commodity both for the governments as well as the expatriates who come to this land looking for fortunes. There is a mutually benefiting handshake between the buyers and the sellers for the property Dubai. Dubai government is pro active in undertaking commercialization and corporatization of its economy ahead of its competitors and seeks to lessen its dependence on the ephemeral oil accounts. It has rightly struck the cord upon its precious human resources the so called non-national professionals and foreign companies who come to operate in Dubai. More and more international companies are sliding in Dubai property market to benefit from its no-tax / free zones and business friendly policies extended from the rulers of Dubai headed by the celebrated Sheikh Mohammed bin Rashid Al Maktoum. The steep rise in rent rates calls for supply of hassle –free property ownership on the soil of Dubai, extended to the prospective buyers in the Dubai property market. The transnational companies trying to establish their business here and the expatriates who come to work in this land of fortunes and megabucks constitute the major percentile of beneficiaries. The low crime rate in this land is an extra ordinary feature that gives impetus to the buyers of the Dubai Property.