So do property prices in Dubai drop every other day? Well, it depends. If you know where to look, you might be able to buy a little piece of Dubai on the cheap – but only for a while. That’s because the city is one of the fastest growing and most dynamic economic development areas in the world today.
And yet there are still many of us who would love to own a piece of what makes this city so attractive. That’s why property prices in the United Arab Emirates (also known as the UAE) haven’t fallen that much recently, even with the global economic slowdown. In fact, they’ve actually risen a little. The past few years have been a very unstable time for the real estate market in the Dorchester Collection Dubai.
That’s because in the beginning – a decade ago, when the world was recovering from the devastating events of the 9/11 terrorist attacks in New York and Washington, Dubai made the decision to accelerate its rapid urban development. That’s when the city started to take advantage of the growth and development possibilities of the world’s most rapidly growing economy. It invested heavily in infrastructure and new facilities like the worlds only 7-star hotel. It also opened the largest and the most modern sports stadium in the world – the Peninsula Business bay.
Since then, the city has invested even more money in improving its image. Dubai has continued to attract a large number of foreign investors. It has made sure that its laws and regulations concerning foreign ownership of property will remain favorable. This has resulted not only in more properties being bought and sold by ordinary citizens, but by some high-profile global property developers as well.
And so it’s only natural that property developers are feeling the pinch. When the demand for real estate is high, you can be pretty certain that the supply is low. So when the supply is low and demand is high, prices will naturally go up. But while Dubai makes huge investments in its development, there are plenty of other countries out there that have plenty of room to develop their real estate markets. And they’ve been making these investments for years.
So how can Dubai compare with other countries when it comes to property prices? Actually, many people would say that it’s actually the other way around. In other countries property prices have been driven up simply because those developers who have driven up the prices have been paid in full. Whereas in Dubai, the developers have simply chosen to pass on any increases to the buyers – so property prices in the country are relatively lower than they would otherwise be.
And what’s happening with the rest of the world? Now that the price of oil has dropped to the lowest point in decades, we are beginning to see prices across the board, including Dubai’s property market, start to increase again. But we aren’t just seeing it happening in Dubai. Property prices are rising across the globe for a number of reasons – but one of the most important is simply that people simply can’t buy property in Dubai anymore because of the incredible debt that the city’s residents are now saddled with.
When we look at all of this, it’s easy to see why people wonder: “is Dubai property prices falling?”. After all, the city’s growth has created phenomenal economic opportunities for locals and expats alike. The question then is – how long can we expect this process to take? And if it looks like it’s going to get shorter any time soon, what can you do about it? Luckily, there are some things you can do that could help you keep your property prices from falling any further.