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Archive for January 18th, 2012

The year 2012 has begun with a generally positive outlook of Dubai real estate sector because the reports indicated that transactions of properties in Dubai went 20 percent up in 2011 as compared to that of previous year, 2010. This news triggered the assumption that finally Dubai real estate has come out of long stretched crisis and it has stepped on the recovery path. Though the crisis had kept the region under its influence and experts were predicting a double dip in the market, investors are happy to hear such good news after so long. The year’s end reports revealed positive results about Dubai real estate sector overall.
Experts are cheering the fact that Dubai real estate business achieved an impressive stability in the sales and rental prices during the year 2011 and an increase in total volume of total investment of AED 143 billion was observed. This gradual increase will certainly bring back the investors’ confidence in this sector and this rise is expected to continue in 2012 as well.
Rental prices remained particularly stable in Jumeirah Lake Tower, Dubai Marina, The Greens, Al Barsha, Downtown Dubai and Discovery Gardens. However, a decline in rental values was also witnessed in few regions such as Silicon Oasis, Mirdiff and International City. There are some valid reasons behind this decline.
The entry of new supply will certainly pressurize the residential as well as commercial sectors and affect the transaction of low quality and improperly maintained properties in Dubai. At the same time, experts believe that the sector will not bottom out and can enter a sustained recovery phase via macro changes in the overall economic policies that prompt job and wealth creation activities. When the region will have all these attractive opportunities, these opportunities will certainly attract long term investors to invest in this region. They can buy properties in Dubai for the long term investment, to reside in or rent out and yield good revenues.