Dubai and Hong Kong
Frequent parallels are drawn between Dubai and Hong Kong on account of striking similarities between them. It is a cherished desire amongst the real estate investors interested in Dubai as to whether it will ever raise up to the standards reached by the rolling and booming economy of Hong Kong and become a location par excellence in terms of high value real estate amidst the entire Arab land. Dubai like Hong Kong is a highly developed trade and commerce hub, sophisticated free trading zones with low/no taxes in its ambit and a logistics centre for the wider region.
It is equipped with skilled and hardworking expatriate population which is based here for work. In the backdrop of these similarities Dubai has drawn ambitious plans to come on the likes of Hong Kong and has already developed it’s financial, business and tourism sector. Hong Kong has its Disneyland while Dubai land is under construction.
If Hong Kong is a gateway to big wiz China, Dubai is to the petrol rich Middle East with greater US trade deficit. Hong Kong is world’s most populous city with mature real estate sector; Dubai is fast geared up to meet its destination.
The observers are confident that the boom in the Dubai economy is here to stay considering the high petrol prices which will serve as magnet for investment. Hong Kong till date retains premier position in terms of its commercial and residential properties in spite of the Asian Financial Crisis in the late 90s saw the collapsing of the erstwhile mighty Asian tigers and the situation of ambiguity during the handing over of Hong Kong to the Chinese government. This clearly indicates hub cities all over the world will have expensive real estate even if there is short time downslide and this parallel can be drawn for Dubai as well.
In the event of any crisis as fall in the property rates worldwide or decline in prices of oil following US recession the viability of the off-plan real state projects will depend upon the strength of the balance sheet of its developer to be able to carry it out through completion. However the developers relying on the future sales alone to finance construction will be eliminated. This is one of the self corrective market forces that help the survival of the genuine players and helps preserve the value of the existing Dubai property market.
It is equipped with skilled and hardworking expatriate population which is based here for work. In the backdrop of these similarities Dubai has drawn ambitious plans to come on the likes of Hong Kong and has already developed it’s financial, business and tourism sector. Hong Kong has its Disneyland while Dubai land is under construction.
If Hong Kong is a gateway to big wiz China, Dubai is to the petrol rich Middle East with greater US trade deficit. Hong Kong is world’s most populous city with mature real estate sector; Dubai is fast geared up to meet its destination.
The observers are confident that the boom in the Dubai economy is here to stay considering the high petrol prices which will serve as magnet for investment. Hong Kong till date retains premier position in terms of its commercial and residential properties in spite of the Asian Financial Crisis in the late 90s saw the collapsing of the erstwhile mighty Asian tigers and the situation of ambiguity during the handing over of Hong Kong to the Chinese government. This clearly indicates hub cities all over the world will have expensive real estate even if there is short time downslide and this parallel can be drawn for Dubai as well.
In the event of any crisis as fall in the property rates worldwide or decline in prices of oil following US recession the viability of the off-plan real state projects will depend upon the strength of the balance sheet of its developer to be able to carry it out through completion. However the developers relying on the future sales alone to finance construction will be eliminated. This is one of the self corrective market forces that help the survival of the genuine players and helps preserve the value of the existing Dubai property market.
posted by Property Reporter at
10:50 PM
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