Reasons why Dubai reality will stay strong in coming months
The real estate market of Middle East’s most modern city and home of the world’s tallest skyscrapers is something that shouldn’t be taken lightly. In a short span of time, Dubai has turned into a global metropolis with state-of-the-art infrastructure, services, technologically advancement in communications and several man-made marvels like the Palm Jumeirah. The best part about this city is that unlike other Middle Eastern countries, the emirate offers free-zones where anyone from around the globe can buy real estate assets. So if you are wondering whether it is safe to invest in properties in Dubai or whether the market would stay strong by the end of 2016, we have some encouraging facts for you to consider.
Like every other real estate market in the world, Dubai has also had its ups and downs, but there are only a very few markets that have recovered as fast as Dubai. Being part of a region where economies thrive on oil, Dubai has actively diversified its economy into non-oil sectors. This has enabled it to become the shopping capital of the world and develop one of the best residential communities in the MENA (Middle East and North Africa) region.
Expo 2020 flair
Dubai is the host of Expo 2020 international event. The emirate made big promises in order to win the bid to host the expo and it plans to make good on it. As a result, the government and property developers are busy building giant shopping malls, high-rise apartment buildings, lush green parks and hotels across the emirate. Also in the offing are several entertainment options and one-of-akind theme parks. The momentum provided by the Expo 2020 to the Dubai’s real estate sector and its economy has a whole will likely keep bearing fruits for years to come and help the city brave global fluctuations with ease.
Although Expo 2020 is still four years away, the government’s spending on infrastructure improvement is steadily improving the outlook of the city. Projects such as Dubai Water Canal, the upgradation of Dubai World Central to Dubai South, development of Maktoum International Airport and Dubai Parks & Resorts near the Expo 2020 site and the extension of Dubai Metro Red Line are expected to provide greater access and amenities to the emirate’s remote areas and help push real estate prices upwards. The encouraging development of residential communities in Dubai’s suburbs is already attracting investors to localities like International City, Dubai Sports City, Dubailand and Dubai Motor City and their interest is likely to grow stronger in the coming years.
Supply according to demand
Dubai’s real estate market is also holding its ground firmly and property developers are supplying a calculated number of units in accordance with the demand, helping the market maintain a healthy balance.
Increasing Investor interest
Dubai’s property market has always attracted interest from investors belonging to strong liquid markets such as India, Saudi Arabia and Pakistan. The South Asian markets of India and Pakistani are of special consideration as property investors here find lucrative residential spaces with high rental yields in Dubai and the high-end infrastructure facilities and the tax-free environment of the emirate makes it a natural investment destination for them.