Real Estate Companies in Dubai Warn Of Another Real Estate Bubble
Posted by brianaharry on February 23rd, 2014
With the announcement of the World expo set to take place in Dubai in 2020, real estate companies in Dubai are worried about a real estate bubble. The question is whether government and financial institutions will be able to curb the impending inflation of property for sale in Dubai.
Real Estate Companies in Dubai are worried that Dubai might be facing another economic bubble like the one that hit most countries in 2009. This comes after Property for Sale in Dubai has seen a steady just more than 22% compared to what happened in the previous years.
Dubai is already home to the world’s tallest building, fabricated islands in the shape of palm trees and in the shape of the world. These properties are so impressive, that sometimes you feel as if you are a part of some sci-fi movie, not a real place, where people work and live just as everywhere else in the world.
The oil-rich country of Dubai has had a longstanding penchant for property development resulting in some of the monumental buildings and impressive real estate in the world. Many sectors are still recovering from the last financial crash and the real estate market had ground to a halt until it was reported that Dubai would play host to the World Expo in 2020. It is expected that most of the real estate development will be centered around the new airport and around the conference center (if there is still space to put up structures).
Real estate companies in Dubai have learned a thing or two from the last bubble although trends show that the property costs are still growing at an unsustainable rate because of the speculative buying that takes place and the fact that Dubai attracts a lot of cash buyers. This is not always good for the indigenous citizens of Dubai who want to own a piece of great properties that go up for sale to get into the market as investors. This has meant that many of the people who are set to make the most money are foreign investors. In fact, as much as 70% of property for sale in Dubai has been acquired by cash buyers from countries like Iran, Russia and Greece. To curb this the U.A.E proposed that foreigners be barred from taking out mortgages that are worth more than half the value of the property.
This however will not do a lot to dissuade, foreign cash-money real estate investors from doing what they have always done in Dubai: Walking into Real estate companies in Dubai with suitcases full of dirhams to buy prime apartments in buildings like the Burj Khalifa. These are not people who are worried about mortgages and some Real estate companies in Dubai who are catering to the lower end of the market.
If you are tracing the trend of the real estate market in Dubai, and are looking for the right avenues to source properties from, you are in the right place. Visit Dzooom for more information on various properties listed for sale by real estate companies in Dubai.
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About the Authorbrianaharry
Joined: February 4th, 2014
Articles Posted: 23
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