According to ratings agency Fitch the real estate sector of Dubai will continue to remain under pressure till 2013 and the prices and rents will continue to decline for the next 12 to 18 months. Do you agree with it? Is there any possibility for Dubai to recover completely before that?
Fitch must have reached that conclusion on base of solid evidence derived from the economic facts prevailing. Having said that, my personal opinion is that Dubai real estate has already touched its bottom and if there are any changes downward, they would be minimal. And secondly, the development work in Dubai by the governments and the investment by the private sector, everything is done with a long term emphasis.
Its difficult to predict the exact time period, however my intuition is that this report is quite valid and the pressure will continue for some more time. I cannot say for sure how long this situation is going to persist but certainly the market is seeing a downward trend at the moment.
Having mentioned the above, one thing I have been saying again and again and I would like to reiterate it is that Dubai is now a long-term market and you will definitely reap the benefits in the years to come. No other city or country in the Middle East has such a great infrastructure and caters to the multinational organizations the way Dubai does so the market is bound to bounce back in the future.
As two gentlemen have already given factual statements, I also believe in the same thing that we can not predict a specific time for Dubai economy to get recovered. At the same time we can not say that it will never be recovered again because many halted projects are on the move again, government is taking active steps and private sector is making more investments. These all things show that Dubai economy will bounce back but no one is sure when.
I would ingeminate that Dubai is the ideal place for long term investment. One day the economy will flourish back and the investors will enjoy all the benefits then. Just wait for the right time and watch the trough and crests of the time.
Well according to the latest updates, yes rents are still continuing to decline in this year too. But a new report disclosed that prices for apartments, villas and commercial properties in Dubai remained stable in the second quarter of this year.
Reports said that Palm Jumeirah still commanding the highest prices. So predicting Dubai future would be on the basis of unclear facts. So Dubai may bounce back till 2013.
It was Dubai which was making progress by leaps and bounds. Sky scrappers, shopping malls, highly paid jobs, technology, tourism, celebrities, high profile events were witnessing that the brightness of this empire will not fade for years but you see there was a big deficiency in management and Dubai faced a stunning depression . A well planned management by government there can lift it again even with in months. 2013 is much away.
I do agree with the report to some extent but I think that Dubai real estate industry is at the bottom right now and there are no more symptoms of further decline in this business. So, according to me, although Dubai real estate will be under pressure till 2013 but it has now started to improve and an increase in real transactions from the last several months has been witnessed.
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