Dubai offers a luxury lifestyle for those who want to live a life full of amenities and luxuries. This city offers numerous facilities like beaches, shopping malls, luxurious hotels, golf courses, spas and saloons for local residents and expatriates as well as visitors and travelers across the world. Good business and job opportunities and a high living standard of this city attract people around the world to choose this city as a second home for them. Such factors make it very desirable to purchase a Dubai property for accommodation and business purposes. The lowest crime rate of this city has made it a very safe place to live with families. This city has emerged as a real estate hub and well-known builders are competing in building best villas, apartments, hotels and business centers anyone can offer in this world. Dubai property market mainly supports tenants but foreigners are also eligible to buy a freehold or leasehold Dubai property if they have enough funds to finance Dubai property purchase.
Highlights of the Dubai property market in the year 2012
Before year 2011 Dubai property market was facing loss and investors didn’t show any interest to make property deals. During the Q4 of 2011 Dubai property market showed remarkable recovery and regain its momentum. Property rents and sale prices become stable also showed significant stability. Experts predicted that this market was expected to hit the bottom line in the first six months of the year 2102. This prediction has actually driven out to be true since the real estate market is remaining stable in first quarter of 2012.
Dubai property market trends for residential properties
The residential sector of the Dubai property market displays mix results. This is because of the rise in demand for premium properties in some areas of the city. While some other areas are still under pressure. Collective analysis of the real estate market exhibits stability. In a comparison report current and previous quarters, villas showed 1% rise in rent during the first quarter Q1 of the year 2012. Whereas selling prices for villas were also increased by 4%. This rise in selling prices of villas is because low availability of properties for sale in Arabian Ranches, Palm Jumeriah and Emirates Living. Buyers have already occupied properties in such areas. Considering rents during the first three months of Q1 in 2012 you will find approximately a rise of 5% in average rent rate of one bedroom apartment in Downtown area in Dubai as compared to Q4 of 2011. Whereas a Villa in Arabian Ranches with four bedrooms and a 3 bedroom villa in Meadow had shown a rise in rents around 2% and 3% respectively. On the other side, apartment rents demonstrated stability almost in the main areas of the city. This concludes that the residential estate market is moving slowly towards its track.
Dubai property market trends for commercial properties
As compared to the residential estate market, the commercial real estate market showed considerably low performance. The real estate market showed a decline of 2 % in the total sale of offices or commercial properties. This is because of falling off business deals. The office’s rents were also declined by 1%. For the year 2012 experts have predicted a brisk startup of the real estate market. As commercial landlords improve their properties to execute demands of tenants, more foreign companies started looking to inaugurate their office outlets here. These progressing trends in the commercial real estate sector play a key role to develop Dubai’s image as a safe place for business. Moreover, landlords also provide more incentives and flexibility to tenants to support them.
After observing market trends for Dubai property in the year 2012, you will be able to decide your investment strategy in real estate Dubai. You can clearly understand that the real estate market supports tenants. So it’s better to make an investment in rental properties, whether you are going to invest in residential or commercial properties.