Dubai property broker was approached yesterday by two clients who are ready to purchase property right now.
The first one is looking for 2 bedroom apartment in Dubai within a budget of 1 million dirhams, while the second offered 2% bellow the original developer’s price for one bedroom apartment off-plan in a prime location.
Since the real estate industry in the UAE took a downturn a month back, many feel that the current scenario ultimately benefits the end users. It seams the present conditions enforce the correction everyone feared. As the global financial crisis dries up liquidity and years of profits from investors’ portfolios, the market has gone into a bearish mode. While all things remain the same on the ground, in terms of UAE property, both small and big investors have shifted to a very cautionary stance, pulling out money from wherever they can and holding off buying any assets.
Clearly, a fall in real estate prices is evident with more units falling to levels where a larger segment of the population can afford it. Property prices in the UAE were too high previously, even if the country has emerged as the business hub of the region, thanks to business friendly practices.
How low the real estate prices will go and for how long we can’t speculate to predict, but for sure some good value for money offers are already in the market for grab.
Serious property investors are always looking at the long term benefits, including higher ROI and increasing rental returns, when making investment decisions. These factors, which few asset classes can offer, definitely boost the confidence and comfort level of real estate investors in terms of safety of investment.
While most buyers are in the sell mode, it is interesting to note that some are ready to invest in Dubai now and during the next one year, clearly indicating that people feel the market will adjust to the crisis and respond proactively to the downturn.
The prime locations to consieder right now are Business Bay, Downtown Jebel Ali, Dubai Marina and the up-market Emirates Hills and the Palm Jumeirah, where discounts reached 25% off.
