Who says the market is down?
Over the years, experiencing different economic cycles in the past decades, Dubai has proven to be robust and has proven to have the tendency of returning back to boom with its strong economic reservoirs, important geological situation and good relations with the other countries.
No matter how the condition of Global Economy persists, Dubai has continued to attract businessmen from around the world to establish their base with tax free revenues and wide range of opportunities. Recovering from the earlier glitch in 2008, Dubai Real Estate industry has not only learnt a lot but has also taken some strong initiatives which has not only helped in rightsizing the market, but has lead the market towards maturity more. A major role played in this regard is by RERA which not only has centralized all the transaction through database management, but has also regulated rules that discourage price increasing and property flips. Going back in time, where Dubai real estate market was one perceived as a place where money could be doubled through short term investments, the situation for end-users were going out of hand at that stage and these kinds of sign are not good for any real estate industry, therefore, the corrections today have opened up the opportunity more for long term investments, and focus on returns rather than immediate capital gains, which are the sign of mature real estate market. Apart from these, all the investments that are made in Dubai Realty are assured by Dubai Land Department that the investors’ money is secure and the economy has the capability to respond to external economic trends in a less drastic manner.
Further, when people talk about the capabilities of Dubai authorities to handle these occurring changes and slowing transactions, it should also be kept in mind that Dubai has proven itself already in the previous crises when many mega projects like Dubai Metro, Burj Khalifa and Palm Jumeirah were completed on time and some ahead of time despite the rumors in the industry. Hence, with more mega projects announced to be completed before expo 2020 like mall of the world, expansion of Dubai Metro, Mall of the World and upgrade and expansion of Dubai Airports, the broader picture of Dubai Real Estate tells a different story and encourages investors to invest in the region which has already proven itself.
The exceptionally increasing tourism every year in Dubai has also affected the Real Estate Industry positively with the increasing demand of Hotels and Hotel Apartments, which also attracts investments within the hospitality industry. Major hospitality brands already operate over here because of its exceptional occupancy rate of 80% all around the year.
Although, a lot of people buy to invest in Dubai, but there is a vast majority that move-in to Dubai for a better lifestyle and luxury offered by the emirate which is incomparable to any other place within the vicinity. Multimillionaires from different parts of Asia and Europe have rooted here to experience the great lifestyle Dubai offers, alongside they reap better returns through their businesses setup. Apart from Property and Real Estate, Dubai has always been a great trading hub, which not directly but indirectly has helped the real estate industry in the commercial sector of Real Estate. Dubai offers top class warehousing facilities that include cold storage at a very cost effective electricity and maintenance which encourages various companies to setup their warehousing within the region.
Hence, looking at a broader prospect, Dubai Real Estate is mature enough now to continue its stable growth, and these are the actual signs of a market that progresses in the long term. Currently, it is the right time to invest in property as things will soon start to pick up, and capital appreciation with occur with the increasing activities for Dubai Expo 2020 and with the completion of mega projects.