Is Dubai real estate up to its potential? This is the question asked by many, as Dubai continues to make its way into the world stage. Will Dubai real estate ever recover? Well, as with many things in Dubai, the answer is “yes.” However, what makes this particular piece of land (which is also referred to as Dubai’s” Marketplace of the Emirates”) so unique and what makes it so intriguing (more importantly… intriguing in a bullish market) makes this bustling commercial and leisure district something that many are lining up to invest in, namely in “the future”.
The very mention of Dubai brings to mind the city’s incredible growth spurt, which has been nothing short of phenomenal. Between 2021 the population of this fast growing metropolis grew by leaps and bounds, ultimately growing by an astonishing 45% in a seven year period. Dubai has become quite the center for the development of the Middle East. This is in no small part due to the presence of a massive artificial island, called the Dubai Mall, and the opening of an international airport featuring the world’s first seven-star hotel. These factors have created a “buying frenzy” for property in Dubai, making Buying property with Bitcoins in this city one that can “flip” when the markets “recover”.
Now, as mentioned earlier, Dubai is a unique piece of real estate in the Middle East. This being said, there are some distinct differences between this bustling city and other cities in the region, especially when it comes to its real estate market. One thing that sets Dubai apart is the fact that foreign money has been allowed to enter the country via a free trade zone, or what is known as a free zone. This allows private investors from around the world to invest in properties without having to adhere to any other rules regarding commercial or residential properties in the area.
In terms of the overall real estate market in Dubai, we can expect that it will experience a slight recovery. However, this is not expected to last long, as the effects of the free trade zone continue to erode the value of the properties in the area. The effects of the free zone have already started to manifest, as prices for property in the area have begun to increase slightly over the past several months. Some experts believe that we may see a “buyer’s market” in the coming years, as Villas for sale in dubai begin to outstrip sales activity.
Will Dubai ever regain its footing and return to previous levels of investment and development? The short answer is “no”. Experts agree that there is no real estate market that can “never recover”, but it is important to remember that the market can” rebound” if the correct measures and policies are implemented. Some experts agree that things may only begin to stabilize in the next few years, with prices and construction projects in the red.
If the market is to ever stabilize and regain former levels of investment, then there are three major factors that must be addressed. First, Dubai needs to open up its arms to foreign investors. Since the early nineties, the city has restricted foreign direct investment and has instead focused on letting foreign companies to own and run many of its commercial properties. If these restrictions were removed, experts agree that the market would likely experience a massive revival, or at least maintain existing levels of investment.
Second, Dubai must reform its property laws. Until now, the law is in place to protect the local buyer and allow development of new property in areas that have seen little growth in recent years. However, because of the rapid growth and high demand for property that can be seen in the area, developers have been allowed to construct buildings in areas that have seen little development in decades. If the laws were changed, experts believe that this would help the market to balance out and allow more people access to the property that is currently available, resulting in a more balanced level of investment and less overpricing of the current stock. The ability to build new is a large part of why Dubai’s real estate is still growing despite the current circumstances.
Last, the government needs to begin building infrastructure that will sustain the continued growth of the market. Between the opening of the Dubai Gold Market in the mid 90’s and present times, there has been little investment in building roads, sewers and other forms of basic public infrastructure needed for an expanding economy. With the addition of twenty-one million new jobs and the nearly two hundred thousand people who have been added to the workforce since the beginning, there is no doubt that the demand for basic services is still high and rising. If the measures that are being taken do not alleviate this problem, then experts predict that the Dubai real estate market will undergo a long and painful recession. This time the recovery will be more gradual, but it is clear that investors need to begin taking action if they want to see any type of meaningful recovery in the near future.