"dubai is back!" Declare experts
Photo credit: Chusico
"Dubai is back!" experts have declared this week.
The emirates' property market continued its strong performance this year, Knight Knox International confirms, just as the firm launches four new developments in one of the most popular destinations in the UAE.
Before the global market crash in 2008, Dubai's property market was booming. Lavish launch parties, celebrity guests and limitless marketing budgets were the norm; allowing real estate companies to reap the rewards and live the high life in one of the largest ex-pat communities in the world.
Yet times changed almost overnight, with investors shying away from expensive developments and off-plan projects, towards more conservative ways to invest their money and assets.
So what has changed?
The UAE is continuing to see positive economic growth, particularly due to the rise in direct foreign investment into the region, which is reported to be close to US$7.7 billion by The World Investment Report 2012.
Indian buyers currently hold the top position for the total number of properties bought in 2011, with Pakistani and British buyers coming a close second and third respectively, highlighting the demand for property in the Emirate state.
The Dubai Land Department echoes this sentiment, claiming that ‘Increased investor confidence in Dubai properties and the growth of deals and transactions ... represents positive indicators for further growth'.
This trend has been noticed by property specialists like Knight Knox International; "People are starting to have more confidence in the stability of the market", comments Property Consultant, Mike Sefton. "At the height of the boom, properties were selling for Dhs. 4,500 per sqft, yet the same properties are now selling for Dhs.1,700; a fraction of the price for the same quality".
Sefton further comments "the demand for both off-plan and built developments is surprisingly similar, proving that investors are confident of long-term opportunities within the country".