I believe the government is quite serious in regaining its lost confidence and the latest news about Dubai World restructuring its debt is definitely a huge confidence booster.
Further information about this latest update is available here:
I personally believe that now is just about the right time to invest, however the nature of investment will have to be long-term. As the confidence is regained, the market will become more buoyant and investors will gradually start flocking back.
Thanks for the handy link, I wanted to invest in Real Estate Business of Dubai but its economy collapsed all of a sudden. This was truly a disappointing moment for many of us, no one could believe it. That's why I am so curious about; what is going to happen with Dubai Real Estate business ?
You must have heard the notion "More Risk More Return". Dubai's real estate is no exception to that but it has few other important indicators indicating that say that it is more return with even less than usual risk for that much amount of risk like improvement in jobs, economy, foreign direct investment, and many others.
You will however need to be prudent in choosing the right investment spots in Dubai and wait for a bit longer than usual.
Big returns are always there where there are fewer people to share them. And vice versa for safe investments with a lot of people going after them like mutual funds and very few returns if any.
Dubai real estate has shown a strong sign of rebound. According to the research, vacant properties in Dubai are now much lesser than the last years figures compared.
Stats explain that in June, 20130 properties were on sale and 11797 properties were vacant for rent. Now in September, 14984 properties are on sale and 9634 properties left for rent. This shows a positive sign as people are taking interest in both buying properties and taking properties on rent. You can read the latest news at the following link:
The link provided by you truly gives a qualitative analysis and figures. Critics say that the current policies of Dubai Government are transparent enough to gain the trust of investors. But still it would require at least 5 years to restore again which I think is a big period , isn't it ?
Well, to be honest, five years of investment in a real market would not be considered as a long term investment and if you manage to make even 25% gains in this period, then I would definitely say that you are doing great with your investment.
Positive indicators are there but the market recovery is going to be a slow process and as I have mentioned before that real estate investment in Dubai now, is like any other investment in any attractive and established property market in the world, it will have to be long-term and gradual. Rental returns are now in the range of 5 to 7% which is a norm in countries like UK and USA so patience is the key now.
As far as prices are concerned, they are getting stable, some areas have shown a little increase as well, so all in all I would recommend to do you research thoroughly and invest with a long-term perspective in mind. In some areas prices are at their lowest levels ever and also at their original values, so its quite a decent time now to invest in the market.
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