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A lot of news reports and industry input attest to the fact that the Dubai property market is back on the road to further growth, just as the UAE economy continues to grow after suffering some setbacks during the last economic recession.
Economic growth typically means the mushrooming of more industries and companies, and more businesses means a higher demand for manpower leading to population growth, which, in turn, means growth in the need for accommodation. Such is the benefit of real estate from any development in the national and/or local economy.
In places like Qatar and Edmonton, Canada, a similar growth trend is being experienced as more expats (in Qatar) and immigrants (in Canada) decide to make the country their temporary or permanent residence.
In the UAE, although some markers of speculation had been observed since late last year, industry experts say that the signs are less marked when compared to the 2007-2008 period. They say that the rate of increase in prices, though alarming on the outset, would eventually stabilize once new supply comes in to meet rising demand in the next few months and in coming years.
Reports state that much of the growth which started slowly in the latter part of 2012 and picked up pace by mid-2013 was fuelled by unrest in other countries, with investors looking to place their money in a safer environment, unsaddled by political and social unrest – one such place being the UAE. The gradual return of confidence in the local market also sparked moderate growth in commerce, leading to jobs and greater housing needs. Hence, we see here the importance of stability in the labor market, and the part it plays in real estate economics.
Government regulatory measures, changes and developments are also continually taking place to arrest any speculative tendencies as, yes, it is too soon to forget the lessons imparted by recent history.
• Economic growth is the product of a rise in commercial activity
• More businesses and industries sustain growth in job sector
• Property demand grows as the population in the country expands
Source: Lovely Claire CD, Special to Properties
The writer is a freelancer