Once the apple of real estate investor’s eye, Dubai has now become a thorn in the flesh for many of them. Especially for those who jumped the gun by ignoring all instructions and precautionary measures repeatedly thrown at them by Dubai regulatory authorities, as well as many real estate veterans, as they made some investment blunders whilst they were enchanted by the remarkable growth of real estate sector. Putting in Dubai real estate was certainly not a bad investment decision, but being incautious was. Even though the stupendous growth made Dubai look like an out-of-this-world place, in reality it wasn't, which means the rules of economics were as applicable to Dubai market as they are to any other market in the world.
So what’s there for investors, now when the Dubai dream is over …?
Before we continue to answer this question, let’s respond to this one. Is the Dubai dream really over? To tell the truth, all negatives reports and stories coming from the Dubai circles are having a little bit of hyperbole, there’s no denying that Dubai real estate market is dealing with some serious setbacks, but such problems were always expected. Dubai was never going to escape the consequences of global recession, especially when it mostly depends on tourism and finances coming from the west in form of real estate investments, as it is not oil-rich like its neighboring Emirates (e.g. Abu Dhabi).
Investors, who invested in off-plan properties without checking the credibility of the developer or real estate brokers with RERA, are probably the most grief-stricken group, as more and more developers are running out of finance to carry on with construction work, at the same time they are unable or reluctant to pay back. These investors are left with no choice but to file a suit with Dubai real estate court.
For those, who are worried because of sharp decline in prices, the best option is to hang around. Chances are that we will see recuperation as soon as we recover from financial crunch. It's only a matter of people getting out of their saving mode and touring Dubai (after all tourists attractions like burj-ul-arab or shopping malls have not vanished, they are pretty much there). Dubai is also looking towards a bail-out from Abu Dhabi, while Dubai government is also working to keep the damage caused by recent crisis in check, even if it requires the implementation of the new villainous media law.
William King is the director of
Ajman Property & Ajman Real Estate,
Wholesale Suppliers Directory Manufacturers Distributors and
England Wholesale Suppliers. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
