For those who are looking for an investment opportunity that doesn’t surrender to the international fall trend in real estate investment transactions, Dubai real estate market still appears to be a profitable option. Even though the initial stage of crisis seems to have gone, the credit crunch is expected to continue well into 2009, chiefly, in European and US property markets. This signifies a substantial decrease in property transactions in these markets.
However, according to many surveys conducted, the UAE real estate market, and few other markets such as the Asia Pacific, will not be affected to a great extent, and continue to draw investments.
Dubai real estate boom began in 2002, When the government of Dubai started permitting foreigners to invest in real estate, and this trend has lead to a series of real estate boom across the region. The GCC mortgage market, chiefly the UAE, experienced enormous growth over the past year, encouraged by the real estate boom.
Various experts have forecast-ed that mortgage market in the UAE will observe a major leap from Dh.20bn by the end of 2008 to Dh.64bn within the next three years, with Sharia-compliant house financing share to more than 60 percent of this figure.
Good news for a Dubai realtor is that the center of current financial Crisis is US and Europe and as far as UAE is concerned its economy does not suffer as much as Europe and America mainly because of oil wealth and dynamism in the economy. Moreover the future prospect of real estate market of Dubai is quite good for 2008 and beyond because of the fact that there is intense and ever growing demand for real estate in Dubai with almost 5,000 new families moving their base to Dubai every month. This is the area where, supply cannot keep up with demand, which in consequence increases rental rates charged and of course the underlying value of completed resale properties.