Dubai property: An update

It’s reaching the end of 2007 and that downturn in the market that has been predicted by many a property expert has yet to materialise, and now it seems that it’s going to take even longer than expected.  All signs point to the cooling of the property market, with the boom extending beyond what investors thought, and the release dates for most property projects about to arrive.  This, however, is not going to be the case, as further construction delays are pushing back projects, and much needed supplies of property are still stuck in the pipeline.

Delays, delays and more delays

It is shocking that there are so many delays on the construction on freehold properties and rental properties in Dubai, especially since the Emirate has a reputation for constructing the impossible at record pace.  Therefore, while the Burj Dubai Tower continues to grow at astonishing pace, other, less demanding projects are facing difficulties.  Maybe developers have been over ambitious with their project targets, as some have been pushed back up to 2 years, which really makes a difference to buyers that will have to pay extortionate rents until they can move into their own homes, which they have bought to avoid the rents in the first place!  One thing for sure is that when the glut of property does get here, it will be a huge relief for many residents out there, and let’s hope it arrives sooner rather than later.

How much longer will this Dubai property boom last?

It really is a game of guessing, but with the predicted release dates of much-delayed projects, some are saying that we may have to wait until 2010, yes that far away, until we see a downturn in prices, meaning more difficult times are still ahead sadly.  Fortunately, while we do all suffer from property madness, we can take some relief in the fact that the Dubai government has taken action against greedy landlords trying to overcharge residents.  Rent caps and other legislation will have to protect us until the market corrects itself!

Inflation is taking a toll on everyone, so all we can do is live with it until supply and demand finally level out.  Most people have opted for buying properties that are already complete, and as there a quite a few around, perhaps other property investors should do the same.

To find out more information about buying Dubai property or real estate, please contact us.

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