The real estate market in Dubai has been depicting growth in several areas since the year 2010. Last year, however, was a challenging year for the property sector, although, the decline in property prices slowed down considerably towards the end of the year. This is a noteworthy aspect of Dubai real estate sector.
Despite economic recession, the speed with which the real estate prices are recovering shows that the market is moving on the positive path. Although recovery and stabilization are limited to prime localities in Dubai, a uniform and steady recovery is expected this year, say analysts.
According to Cluttons, the residential sector of Dubai is seen outperforming the commercial sector, with prices of residential properties in several areas having gained advantage from the current capital shifts in the region.
Since the start of 2011, prices of communities like Arab Spring, Arabian Ranches, Dubai Marina and Jumeirah Lake Towers have been going up. Although the commercial real estate is currently not doing so well, buyers are gradually showing interest in this sector as well.
The offices available for rent in Dubai help in saving costs to the businessmen, as the prices have begun to decline slowly, in comparison to earlier times. In comparison to New York or London, prices of properties are affordable in Dubai.
Moreover, buyers are now giving importance to the price, location, quality, sense of community, architecture, internal decor, and other amenities. Sellers, in order to create demand of their properties are now offering properties that suit the requirements of buyers.
All these factors are rendering positive attributes to Dubai real estate, making the market more mature in comparison to earlier times.
Some experts are predicting a kick-start recovery of the market in 2012, while others are still of the opinion that the new supply will continue to keep the market pressurized.