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There is no meltdown and there is certainly no bubble burst. The problem is, Dubai has been a victim of its own success. Not to be confused with the worldwide
economic crash, it is now the recovery and long-term sustainability that everyone wants to know about.
How safe is it to invest in the Dubai property market? Will my investment grow? Should I buy or rent? These are just a few of the questions that we are regularly asked. So, let us have a look at what has actually happened over the last couple of years. Firstly, Dubai bounced back from the “crash” and was a world leader in the “recovery” stakes, but as we know from past experience, racing ahead too quickly can often mean you run out of steam too soon, eventually having to slow down to catch your breath in order to last the distance.
What we have been witnessing for the last few months is clear evidence that the market is listening and taking notice of what needs to happen in order to maintain our “world leader” status. It is almost as though our industry has developed a mind of its own and is taking control of itself rather than let mere humans take the reins.
Not a bad thing in my opinion. The worst label I think we could give it is “slowdown,” and this should certainly not be a worry for the long-term investor or end-user. The slowdown in the market is positive in the long run and alleviates the potential overheating, therefore nurturing the long-term stability that we all want to see.
As with most industries, the property market relies on supply and demand, and the one thing that continues to grow is demand. Demand for property can only continue to increase mostly due to the influx of new business and foreign investments in various sectors to meet the growing demand to build and complete the infrastructure program and related projects to support Dubai’s hosting of Expo 2020 from October 20, 2020 until April 10, 2021. It is expected that the event will draw more than 25 million visitors, expecting Dh25 billion in total investments in infrastructure-related projects, and create 277,000 new jobs.
Now that is going to create a demand if nothing else.
* Activity in the real estate market expected to remain favorable this year
* Demand in Dubai continues to increase due to influx of foreign investments
* Property market slowdown allows investors to properly plan future projects
Source: Dawn Draper, Special to Properties
The writer is Managing Director, Pennington Real Estate LL