Dubai Real Estate is Growing Up

Since 2008, the Dubai real estate has gone a long way from crashing due to the global recession that mightily affected the region. Now, the real estate in Dubai is flourishing and it’s brighter than ever.

The sudden growth has led developers to churn out many projects left and right. In effect, there have been increases in regulations made by the government in order to increase the amount of stability in the market. These regulations coupled with a number of economic factors have slowed down the real estate sector, although for a minimal mark. Is this a sign of a maturing market?

Typically there are many definitions of what may defined as a mature market, but a few key identifiers could be described as follows, according to Andrew Chambers, CEO of GGICO Properties and long time real estate veteran.

INCREASED REGULATIONS
-    Increased regulations aimed to reduce unscrupulous transactions.

MORE NEGOTIATIONS
-    Due to the high prices of units being sold, more buyers are asking for a bargain from sellers.

STABILIZING MARKET PRICES
-    With a steady, measured, and considered growth, a planned release of products will help stabilize the market. The market remains a little oversupplied at the luxury end and the impact of lower oil prices and stronger dollar will undoubtedly dampen the demand from overseas investors.

BROKERAGE MARKET
-    Less rogue agents and slowing down the amount of players in the market will be good for market confidence and stability.

AFFORDABILITY
-    This is now starting to be addressed by some developers in areas such as SO and DSC, where more mid level property, with good payment plans allowing people to buy to occupy.

CLEARANCE FROM BANKS BOOKS OF TOXIC/PROBLEM STOCK
-    The past 5 years has seen banks stuck with many non-performing or incomplete properties in default. This is not good for a stable property market. This seems to be resolved now, with many projects restarted with adequate finance and good business plan to see the construction to completion.

SUMMARY
Whilst there is some way to go for Dubai to be recognized as what the world sees as a Mature Market, Dubai has well survived turbulent times and a number of the issues raised here either resolved or in the process of being resolved. Nevertheless, it is still important to keep Dubai as being seen as a robust and very positive market position in the World’s eyes.