Why We Should Continue to Invest in Dubai

Dubai has been buffeted by the winds of change in recent months. فتح حساب بنكي في دبي winds they were too, bearing no good tidings for individuals who had invested in real estate. As projects were stopped in mid-stream, thousands of workers and expatriates left the emirate in haste. Ancillary industries such as entertainment, shopping, dining and other have also felt the hit of the change. More realistic sellers in real estate have realized they would need to lure buyers by offering easier installments or rents or prices to let deals complete.

Now that the Dubai World debt issue has been settled for the time being, attention is once again directed to the uncompleted structures of the sky city. By recent estimates, some 67 percent of projects have resumed and are ongoing in the emirate, as the remaining suffer from neglect, mismanagement, insufficient capital or worse. It will definitely be in the federal government and Dubai’s interest if these projects were resumed aswell. The banking sector must develop a favorable climate in order that credit is easier to get and funds can once more be borrowed and applied towards the completion of projects. In some cases, mergers or acquisitions could be necessary among real estate firms to have the required strength in finance or management so that you can carry on.

Others have noted that some firms are disillusioned with the way the emirate has handled the Dubai World issue, and so are shifting operations to Abu Dhabi, Saudi Arabia, Sharjah, Qatar and Bahrain- where they see conditions as more stable and greater protection and profits for his or her investment. Indeed you can find those who believe Dubai has over committed to just one or two principal areas- like hotels and convention centers- and believe with the oversupply all in a single place, there will be high competition and a dilution of profits in the future. There certainly appears to be some logic in this contention. One doesn’t need to actually count the number of developmental properties in this area to see that there is definitely an oversupply of some magnitude.

The Asia-Asia Hotel project itself is rumored to possess 6500 rooms- and if that is only one hotel, what about the others? One does not really see Dubai as a convenient location for a global stopover by tycoons and corporate businesses. Having said that, it just may work as an excellent convention center. Dubai definitely has all the technology, administration and infrastructure to operate as an offshore convention center for international and regional conferences. But beyond that it is questionable whether investment will continue steadily to flow in. Foreigners who came directly into Dubai on a three year visa and committed to the emirate as a summer location away from home have been in for a rude shock, or series of shocks as the value of their investment has been constantly diluted by recent events. Some will certainly look to recoup their investment when the market arises in 2011 and are looking to get out then.

At the moment, rental property in Dubai is highly affordable because the exodus of migrant workers in the last wave has shocked owners into more sensible offers. To rent apartment Dubai or rent property Dubai may be the easiest thing to do with Dubai property nowadays. Furthermore challenging is finding villas to rent in Dubai in terms of rental property in Dubai as these demand a few of the highest rates.

All this leaves the federal government and the private sector with no option than to make conditions more amenable for investment in Dubai Holiday Rental or Dubai Real Estate. If they have a comprehensive plan with zoning in order that population in one large area is served by the shops and establishments in that area, then no-one would have to go very far for the daily conveniences of life. Respect for human and property rights and enactment of laws are essential if investment is usually to be attracted to Real Estate in Dubai. Apart from sales and purchases of Dubai Beach Property, the continuing future of UAE Real Estate is at best uncertain currently.