There are many rumors in Dubai real estate market that there is another property bubble in Dubai. Investors are reluctant in buying and selling the property or investing in new properties. It is good to know all the latest trends before investment in real estate.
Let’s look at some of the stats and news about real estate companies as published on Gulf News.
“Kuwait’s Al Mazaya reports AED 40.3 million H1 profit for 2014 that is 631 percent more as compared to previous year”
“Dar Al-Arkan reports AED 119 million profit for second quarter that is 17 percent more as compared to previous year 103.7 million”
“Nakheel to build 1,000 villas in Nad Al Sheba by 2016 and expanding their leasing, hospitality and retail portfolio”
“Mall of the World plan was proposed that will be built on Sheikh Zayed road and expected to complete before Expo 2020”
“Rental rate surges by 60 percent in most of the areas in Dubai and Sharjah”
According to above news, it seems that property market is very stable and it has a strong backbone. As compared to previous property bubble, this time it is based on facts. RERA is doing a great job by reforming and introducing best procedures for real estate sector.
According to our Senior Property Consultant, “Investors trust can only be gained by showing them factual details about the current real estate market. Prices are not artificial they are increasing normally and best opportunity to invest in real estate. Only rental prices surging artificially that is by landlords to get more money from tenants. Buyers and sellers don’t need to worry about selling or buying new properties in Dubai”
Dubai economy is now growing with a good rate with increasing opportunities for expatriates. However, there is a concern that low income group may suffer due to increase in rental prices.
According to our Property Consultant, “Rental prices are correlated with the property prices and it is a good opportunity for investors because property prices have gone up, but still they are increasing steadily. It is a good sign of improvement in real estate sector. When the property prices goes up, the rental rates will automatically increase.”
Call 043 95 1212 for Buying, Selling or Renting properties in Dubai or Contact Us for advice and information.