Dubai Real Estate Market experiences strongest demand in three years

The demand for Dubai properties is rising at a much faster rate than supply resulting in prices starting to increase across the luxury part of Dubai’s real estate market.

Various developments across Dubai are experiencing the highest demand in three years resulting in the high end market recovering quickly.

According to the latest Knight Frank Global House Price Index, Dubai’s property prices rose by 2.3 percent in the last three months of 2011, spurring investors to buy property in the country whilst prices are still comparatively low.

Many Dubai real estate developers have reported in the first quarter of 2012 that properties in established areas are approaching full occupancy levels and rents have now started to increase.

One real estate expert has revealed in a recent report that Dubai’s residential property market has started positively in 2012 and is now “more secure and transparent” with residential sales continuing to rise.

Dubai’s recent upturn has certainly attracted more investors to the country building positive momentum. 

According to the Dubai Supreme Fiscal Committee, Dubai’s economy is showing positive signs of growth after the prediction that it will grow by 4.5 percent in 2012.

The news has fuelled investor confidence and many property investors are shifting their attention to buying in areas such as the popular Dubai Marina before prices rocket.

What Happening in UAE Property Market

The United Arab Emirates' real estate markets have been in the news over the last year, and much of that news was negative. When the ball dropped on the new year, it seemed like it brought a new vitality to Dubai and the rest of the region's real estate industry. It's not all good news of course, but there are initiatives that are believed to be good for Dubai accommodation and the region, and harbingers of better times to come.

Dubai Property College has formally joined with the Arab Administrative Development Organization (AADO) in a new initiative to spread real estate sector professional education and training throughout the region. Mahmoud El Burai, Director of the College and the Director for Real Estate Development for RERA, the Real Estate Regulatory Agency, is quoted as saying: "It puts in place the foundation not merely for harmonization of standards and practices but also for the creation of a real estate bloc with huge appeal and, significantly, credibility for investors from any part of the world. The aim is to get the professional practice right by making sure the training is available to a level which is aligned with best international practice."

CB Richard Ellis has issued a report showing that projects put on hold in 2009 are being reactivated, with new contracts being awarded and old projects moving to completion. With prices down already, it is expected that this new inventory will bring them down even more. Landlords are using staged rent and other incentives to attract tenants. Though prices and rents are down, there is also new investment interest in the area. With prices Dubai property for sale in some areas off more than 50% from their peak, institutional investors are entering the picture, buying up in size and quality to increase their holdings.

One trend expected in coming year is more activity in mergers and acquisitions. With more than 2000 brokers listed by the Real Estate Regulatory Authority (RERA), it's a fragmented market that should result in stronger and larger companies buying up the smaller entities. Along with mergers and acquisitions, there is also the prediction that activities will begin to shift from development to more project management and restructuring.

All considered, the Dubai properties appears to be in a position to see a return of some of the excitement of the past in real estate development.

How to Buy Dubai Properties For Sale

Due to the wise planning by the Dubai leadership, the buying process of Dubai properties has been incredibly lucrative. With development areas for the highest residential tower and largest mall in the world, Dubai is experiencing a booming real estate market. Owing to strong fundamental demographics, Dubai is enjoying a vibrant real estate market boom. In Dubai, real estate prices have risen due to high demand and supply shortages.

The Dubai government has managed this economic boom with a push-pull management. The Crown Prince relaxed foreign ownership regulations in the year 2002, thereby allowing for 100% foreign control of "freehold" property which could be sold, rented or leased. As a result of this move international investment has flowed into Dubai. Other offers like no capital gains tax in the UAE and no stamp duty on UAE real estate has all induced more real estate property investment in Dubai.

The Dubai Strategic Plan for 2015 is an ambitious plan that targets high GDP growth rates with an increasingly skilled workforce, through extensive investment in financial, construction and tourist sectors. While other regions in the world are experiencing credit crunches due to mismanagement, Dubai has a credit surplus and is an emerging international financial centre.

The Dubai accommodation has options available for commercial properties, short-term rental properties and office spaces. It also has residential properties that include apartments, luxury villas and mixed-use gated communities. These are also waterfront properties, beach resorts and penthouses. The opportunity is awesome as many real estate developments have extensive waiting list and the Dubai rental property offers high yields of around 12 - 15% per annum.

Sensuous Dubai and Its Best Accommodation

Most commonly considered as the Las Vegas of the Middle East and the Manhattan of the East, Dubai evokes a feeling of thrill and charm. One of the richest cities in the world, Dubai is a remarkable city with the top-notch attractions, interesting historical and modern sites and finger licking cuisine. Coming down to this part of the world is no longer an arduous one, given the number of frequent flights to Dubai. The unmatched lavishness, class and luxury of Dubai are most appealing!

Dubai city is an emirate of the United Arab Emirates and is nestled in the south of Persian Gulf. Bearing the largest population of the nation, Dubai city has emerged as an overall global city and is a leading business center today. The city has been the epitome of attraction and lavish lifestyle since a long time now and owing to cheap flights to Dubai, reaching Dubai is no big deal at all! Tourists have loved Dubai's exquisite distinction from the other emirates with sporting events, large constructions, beautiful landscapes and backdrop, fabulous shopping festivals and lots of entertainment hubs.

Whenever cheap and affordable vacation or travel is mentioned the fist city that comes to mind is Dubai. It is a modern, vibrant and exciting city filled with wonderful surprises. Traveling to Dubai is one experience that most people crave for, yet accommodation is one such thing that they worry about. You must know this that you no longer need to worry about it, as long as there are Dubai rentals. What is a better way to stay in Dubai, apart from using a convenient and a comfortable option of service apartments that are easily available through various websites.

Dubai's skyline is spectacular especially at night. If you want a condo Hollywood style then you can check out Dubai Marina. Sheikh Zayed Road of Dubai is one of the most posh districts in Dubai, you can opt for great apartments there. If you are a couple then you can even look for studio apartments, in International City's Spanish Precinct. What this provides you with is the spectacular view of the sea. Similarly each and every apartment is a piece of art because it is infused with all kinds of modern day amenities.

Dubai properties allow you to live in a clean and safe environment that provides of well-managed car park amongst many other things. Other complimentary services include, welcome service, which entails that your luggage is safely transported to your room. There is housekeeping available before your check-in and after your check-out. You even get bed linen and towel change once a week, this is to ensure saving our environment. Bathroom essentials like shower gel, shampoo and hand soap are made available. Fast and reliable internet connection is made accessible, completely free of charge within the apartment. Again simple yet mandatory services like, central air conditioning, electricity, gas and water are also accessible.

There are so many Dubai accommodation options available in the form of Dubai marina apartments, Burj Dubai and many other Dubai properties available for rent or for sale. Just make some search and choose your favorite Dubai property at your favorite place.

Which Location is Suitable for Investment in Dubai Real Estate

All of the many freehold developments under construction or finished on the Dubai property market are spread out across the city, and it is important to buy a property that will benefit from location. There are a number of projects in key locations; for buyers who want to live away from the rush of city life, and buyers that want to be in the middle of the city. Some investor's want a bit of both, easy access to the city but outside the chaos and you can easily find a property that fits into your individual criteria.

Massive projects like Business Bay and Downtown Dubai are located next to Sheikh Zayed Road, in the middle of Dubai. The developments are aimed at bringing a modern, luxury lifestyle to buyers, with the convenience of already being in the city. Any Dubai resident will tell you about the horrors of traffic, and for the many people that work on Sheikh Zayed Road in the business district; this is such a great spot to live so you don't have to queue for hours at the beginning and end of your day. Prices are quite steep, but Dubai properties on the other side of the city are available at Dubai Festival City, which is a bit less commercial but just as convenient.

The idea of living away from the hectic city is very appealing to some property buyers, particularly with families. Villa developments are all outside the main city, and now several apartment projects are moving outwards for buyers that want to pay less for a Dubai accommodation. International City is very popular for buyers on a more modest budget, and access to the city is still reasonable. For homebuyers, the Emirates Living Community includes The Meadows, The Springs, The Lakes and Emirates Hills in peaceful surroundings and quiet streets, with easy access to the city just down the road. Many more projects are set to be built further out, and within a few years, all the amenities of the city will be available to property buyers that may seem to be far away.

If you want to be in the midst of a busy community, but not in the middle of the city, then new Dubai might be for you. This is an area where a lot of Dubai rental property is appearing, and has created a new and vibrant part to this growing city. Dubai Marina, surrounding developments, Al Barsha and Palm Jumierah are the key hotspots for buying a renting property these days, and with easy access to the city, are becoming increasing popular with buyers. Hotels and the beaches are only a few minutes, not to mention great shopping, so if you are considering buying a property, then be sure to look here.