[ad_1]
With the fall of the Dubai real estate market back in 2008 many property developments were put on hold with a number of projects cancelled which was well documented in the media. Now property developers are looking to complete real estate developments in order to satisfy the commitments that investors made in some cases having paid large sum of monies in line with the building stages. Now with more favourable terms from banks and pressure from property investors the market runs the risk of property oversupply problems, with many investors who were looking to flip properties but with never any intention of living in the emirate. Most agents are reporting an increase in properties being offered for sale from property investors attempting to cash in on the asset.
With a condensed population, central properties still remain viable with interest to potential homeowners and landlords looking for rental properties. Many property speculators who bought in 2007 and 2008 at the peak are having somewhat of a wake up call with valuations and many have not received the return they anticipated, if they can be sold at all, dependent on the location.
Properties in outer lying areas of Dubai, whilst seeming to be a good idea at the time of purchase, being much cheaper off plan property locations than say prime areas like Dubai marina or palm Jumeirah and with the massive expansion plans for the city at the height of the boom. With the contraction of the development of the city, these areas are currently relatively remote and the lack of established public transport infrastructure and these properties are currently not in demand and may lie empty or cash strapped investors having to rent out at quite low rental returns, putting further pressure on rental returns, which remain very favourable at this time towards the tenant. Whilst it is still believed that outer lying areas will be viable investments for long term as the capital expands, interest will only be focused on popular areas particularly around the Dubai metro system i.e Dubai marina, Jumeirah lake towers and the business districts. Whilst Dubai will attract people to its shores incoming residents need to increase sharply in order to fulfill vacant properties.
[ad_2]
Source by Paul Bennett