The Dubai real estate market trends are ever changing in 2014 with lots of ups and downs. We have seen the start of the year was very good because Dubai Expo 2020 brought some fresh air to the property market.
The rates were going high and people were investing in real estate market. The situation now is going down once again as we move to third and fourth quarter of 2014. According to Businessweek, Dubai Financial Market General Index took a big hit since 2008. The real estate giants like EMAAR and Arabtec Holding CO. took a biggest hit as their stocks fell 3.7 percent and 10 percent respectively. Arabtec Holding Co. shares fell over 60 percent this month as stated by Businessweek.
Now DFMGI is declared as a Bear Market because many investors fled their capital. How is it going to affect the real estate market?
According to Standard & Poor’s Ratings Services, the prices of residential property in Dubai were stabilizing and going high. It builds a fear that it is building another property bubble that will blast any time soon.
The foreign investment has increased the property market rates in Dubai. It is a good sign of revival, but the salaries of expats are to remain low that might hurt the property market.
There was a warning by UAE Central Bank that there is another property bubble in making. The UAE economy grew 5.2 percent in 2013; it is the fastest pace since 2006. The property prices were increased 50 percent prior to previous crash. Now the same situation is building as mentioned by the Central Bank of UAE.
Is it The Best Time for Investment?
The start of Ramadan is the best time for investors to invest because rates were low and people are reluctant to invest. The property rates will be going higher as we move towards year end.
According to our senior property consultant, the prices should remain stable because a sudden increase in price may lead to another property bubble that will crash anytime soon. There should be equal level of demand and supply; otherwise we can see another property crisis in making.
The steady growth in property market reflects a positive sign, but buyer’s needs to be careful when doing investment in properties that are artificially priced higher. There are still very good areas that are perfect for investment in Dubai Real Estate.
Are you Buying or Selling Properties in UAE?
You can contact our professional real estate agents at Bluechip Real Estate on 043951212 for any advice or listing your properties for sale or buying a property in a great location.