There has been a lot of talk about recession in real estate Dubai. Well, speaking about the recession, it is Global and Dubai isn’t very much affected.
Beginning of 2016 was marked by the fall in oil prices, the rents were also expected to leniently fall down, which did not happen. Again, mark that the fall in oil prices where global and it did not just apply to Dubai or U.A.E for that matter. Of course, there was a decline, but it was very negligible. Palm Jumeirah rents had a maximum face-off of 7%, which isn’t very much. Deira had a down of 2%, while discovery gardens and other developments at AL-QUOZ only had a down of 1%, in the first few months of 2016. While the remaining parts of Dubai dint even face a difference of one percentage point. The market is again getting stable and both the oil and property prices have again gone up to being normal.
Unlike, other parts of the world, real estate industry in Dubai is quite stable. World-class facilities and high tech infrastructure makes a property in Dubai desirable to many. Dubai laws are also very friendly to the expatriates. And let us not forget it is a metropolitan with the lowest recorded crime rate in the world. So, if you are looking forward to buy a property, recession should not be your concern. It has no effect on the properties as such. Rumors are circulating that the rents will further decline by 2017, but those are just rumors and that’s what they do the best. In fact, in areas like discovery gardens the rents have had a hike of 3%.
Dubai property market is comparatively young and it’s cycles seem impenetrable for now. However, an investment in Dubai real estate is never at risk, as it has a promising future.