Dubai Real Estate: Current Sale/Purchase scenario

The real estate development in Dubai has exploded in the last five years. The yearly census indicates a population growth rate of 6.2 percent which will rise to 8 percent in the next five years. It is necessary to provide infrastructure for the citizens. The increase in real estate in Dubai concentrates largely on premium property. The government holds a sizable share in allocation of areas to private developers to raise residential skyscrapers and commercial space. While you smell coffee in one part of the world, some transactions of real estate in Dubai are maturing. The current sale of many residential and commercial real estate units in Dubai is at its peak. The demand is set to overtake the supply in some sectors. This is likely to affect future sale and purchase of real estate in Dubai in the next few years.

The initial investments have all fallen into place. Bigger developers like Damac Properties, Estithmaar (backed by government), Emaar Properties, Al Nakheel have already entered the next phase of their activities in real estate in Dubai. Some prestigious real estate in Dubai like the Palm in Jebel Ali and Jumeirah have been 60% sold out before completion. Emaar property’s Marina Residential complex of 190 towers and the tallest tower, Burj Dubai are almost complete. This makes purchase of real estate in Dubai easier. Banks have also contributed to the growth of real estate in Dubai. No sale or purchase of real estate in Dubai is possible without easy lending facilities. This will be crucial for the development of real estate in Dubai for some years.

Foreigners need to have local partners before commercial space can be purchased by them. The government still controls the larger part of the infrastructure expansion of real estate in Dubai. The government is largely responsible for the growth of Dubai International Financial Center, the Dubai airport and Dubailand. The property laws may have changed to allow access to freehold space. But the laws still support local Arabs for selling real estate in Dubai. Expatriates wanting to purchase property still need to understand the finer print before inking any real estate in Dubai. They need to understand all legal implications as all real estate in Dubai is not accessible to them. Understanding property laws through a consultant or broker who knows the current scenario of sale and purchase of real estate in Dubai will be helpful.

Foreigners also have to understand that luxury properties will not come cheap while considering buying of real estate in Dubai. While purchasing residential or office space in the Emirate, hidden costs should be recognized and taken care of. There are no indications of inflation rates disturbing real estate in Dubai as yet. Most of the real estate in Dubai sold till now is to investors who will be reselling properties in future. Home owners are yet to make a beeline for premium properties. Right now the purchasing power to invest in real estate in Dubai lies with rich individuals or multinationals only.

Final Tip: There are still no parameters to determine the increase of property rates in the real estate market of Dubai.