The story of boom and bust of Dubai... And, the second boom... A good story to remind all of us to be cautious... -------------------------------------------------------------------------- The second coming of Dubai’s property boom Jun 27, 2013 Dubai’s once troubled property market has seen a dramatic recovery in the first quarter of the year. Reports pouring in for Q1 2013 have spelled good news for Dubai’s property market. Prior to getting a head start in the current year, many experts were of the opinion that 2013 would be the year when the market would pick up but the fast pace of recovery in Dubai has positively startled everyone. The quick recovery has led many to believe that Dubai’s realty sector is headed towards another crash. I, however, believe that the second property boom of Dubai is here and it is here to stay. Dubai of 2013 is nothing like Dubai of 2008. A lot has changed since the economic meltdown, which turned out to be a nightmare for thousands of investors who lost millions overnight. However, Dubai’s property market is a more mature market today where the government has gone an extra mile to make sure that the foundations of recovery are laid on solid, more secure grounds this time. One of the factors, which led to the property crisis of 2008, were property laws or the lack of them. Many observers at Bayut, myself included, are of the opinion that the aggressive law making concerning Dubai property market initiated in 2011-12, went a long way in rebuilding investors’ confidence. The Tanmia Initiative in particular was a step in the right direction, which brought back many investors to the UAE who had left the market with a heavy heart. This initiative led to the resuming of over 300 stalled projects in 2012 alone. To further help the sense of optimism prevail in the market, both Dubai and Abu Dhabi have announced an array of large scale projects. Dubai, which is the city that best defines superlatives, is again poised to reclaim its lost glory. This has not only given the old and new investors some hope but it has also breathed new life into the market and helped it attract many more investors. Another strong factor that will protect Dubai property market against any probable crisis is the ‘multi-stringed’ approach to fuel the property market. The once heavily oil-dependent economy has started putting its weight on its real estate and tourism industry. Together, these two industries have helped the UAE emerge as one of the top tourist destinations in the region. What’s more is that the government has successfully attracted investment from crisis hit Middle Eastern states. The local property market got much of the funds flying into the country because of the Arab Spring. Unfortunately, for the neighbouring politically unstable countries, conditions are not likely to improve in months or even years. It will at least take decades for the situation to improve and in the meantime, Dubai will continue to be a magnet for both local and foreign investors. Sceptics may think that I am being over optimistic with my assessment but, for me, all of these reasons point towards the fact that this recovery for Dubai would be a more profound one. I have said it before and I will say it again: the second property boom of Dubai is here to stay.
Posted on: Wed, 03 Jul 2013 11:32:51 +0000
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