Dubai real estate convalesces from 2008’s slump

Dubai is recognized across the globe for its skyscrapers and state of the art real estate developments. The infrastructure of Dubai has altered massively in the recent years. The fact that Dubai is paying rational heed towards its real estate developments, unveils an idea that Dubai is unlikely to be counting on its oil reserves solely for backing its economic cycle.

Dubai always astounds the world with its contemporary construction works. Be it Dubai Villas, apartments or commercial spaces, this emirate boasts for its peculiar realty developments. Considering the atypical nature of the architectural works, there is no harm in accrediting Dubai as the benchmark for the real estate sector of the world.

An equal attraction for property investors and residents, the realty market of Dubai also practised devaluations during the financial downturn of 2008, which bothered the sentiments of investors in this flourishing niche at that time. However, Dubai did not hold-up in undertaking its real estate developments even after experiencing financial downturns. The city gradually got out of the recessional spell and this realty market in 2012 once again proved promising for the people. According to an estimate, the property experts noted a transactional hike of 65% in the realty market in 2012.

This emirate is also an attraction for tourists from around the world. The changing infrastructure further leverages the tourists to consider Dubai a hotspot for relishing their vacations. The realty sector is also likely to upkeep the bid for hosting in Dubai the World Expo event of 2020.

The local and state governed developers both are active in the pursuit of improving the infrastructure of Dubai. According to a recent report, the developers are heading towards the revival of stalled projects and about 40,000 new homes are likely to enter Dubai’s realty market in the next two years. Recent news mentioned that the developers are energizing building plans after an inactivity of around three years. This revival is likely to be the consequence of the encouragement gained by the gradual recovery in the real estate market of Emirates.

Whether we talk about office spaces, apartments or villas for sale in Dubai, news resources confirm that the property market of Dubai is surging. The current year also seems to be providing healthy return on investments to the property. According to an estimate, the prices of residential properties in Dubai spiked on average by 18 % in the first quarter of 2013. According to REIDIN Residential Sale Index, in the first quarter of 2013, the prices of apartments rose by 18% and the prices of villas in Dubai rose by 17%. Even the rental market showed improvements, which according to a report experienced a hike of 10% in the first quarter of 2013.

Considering the flourishing traits, it can be extrapolated that after 2008, all the sectors of Dubai’s realty market are lined up in the recovery phase for the first time. It seems that Dubai will succeed again in enticing the investors to release their money in this real estate market.