Tuesday, November 17, 2009

Dubai property market - Points to ponder before attaining normalcy

With the Dubai property market, slowly getting back to normalcy, Hesham Elfar, CEO of Coldwell Banker, UAE, reveals to the media, the strategy to be adopted to retain the market in the same way.

According to Hesham, Dubai real estate market is yet to hit the bottom, and a further dip in property prices are likely, before things improve. During the next six months, while the villa prices would continue to remain stable, apartments are likely to see a dip by 5 to 7 percent, due to excess supply coming into the market during the coming months. Even commercial properties are likely to see a fall in prices, due to upcoming supply.

With Dubai showing tentative signs of recovery, players in the industry should not get too complacent, says Hesham. There is more for Dubai to do before it can bounce back, he adds.
In the first place, residence visa issue needs to re-evaluated, as this has drawn several people into investing in real estate in Dubai. A three-year visa has been replaced with a six-month multiple-entry visa, which is expensive and a tedious process with lot of paperwork. This issue needs to be resolved to attract foreign investment, Hesham said.

Also, to further boost commercial markets, the government should offer incentives to companies to establish shops in the UAE. When companies set up offices in a country, they in-turn create job opportunities, housing requirements, and increase consumer spending, which is vital for the economy. Also incentives are needed for financial institutions and trading companies. But, more than anything, a clear, transparent regulation is required to ensure that buyers' rights are protected in a real estate market, Hesham points out.

According to Hesham, Burj Dubai, once opened, will increase the value of property in the area surrounding it.

The Executive Towers, which is recently completed is well-positioned and will gain the benefit of being in proximity to Burj Dubai.

The Infinity Tower, which will be unveiled in June 2010, will offer wonderful views of the sea and Dubai Marina to its residents, given its spiral design.

Victory Heights can get large, reasonably priced villas, close to Dubai Sports City's amenities.

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