Oxford Business Group Claims That Property Crisis No Longer Exists In DubaiWednesday, June 20, 2012
According to news, Oxford Business Group has claimed that Dubai real estate crash no longer exists in Dubai. It says, since residential sector have been reporting solid recovery for the past few months, the worst seems to be over now. Regional editor at OBG, Oliver Cornock highlights in an article published in a magazine that decline in Dubai property prices and rents has started to reverse.
According to sources, during 2002 Dubai welcomed foreign property investors which derived Dubai real estate prices quite high. Dubai offered foreign investors freehold ownerships at many developments across the emirate. Local developers continued launching projects worth billion of dollars which also rallied the prices almost 80 percent in just one and a half year (from 2007 to the mid of 2008). Prices of property fell by more than 60% as a result of financial crises which hit Gulf property market during 2008. Cornock highlighted that though the rate of growth recorded by different agencies is different but they all point towards better recovery of residential real estate in Dubai which makes him feel confident. He also added that investors’ confidence is expected to boost by the through a new law proposed by the government.
The new law has been put forward by Dubai Land Department which is expected to be implemented this month. This law would give additional rights to the owners and enable them to cancel the contract if developer does not provide facilities and amenities according to the agreement. The law also gives some rights to owners in case if the developer does not handover the property within the designated eight months period to them.