Dubai Property Bounces Back
There’s a new IT girl in town this week, and her name is property, writes Meghna Pant, features editor of Gulf Business.
What a week it’s turning out to be for all things property.
Setting the drums rolling was Emaar Properties that not only almost doubled profits for the first six months of 2012, but also bought a plot in Dubailand from Dubai Properties Group to develop as a mixed-use neighbourhood. A watershed for the real estate market, this is also a shot in the arm for the billion dollar suspended or cancelled projects at Dubailand, including the massive entertainment theme park.
Then came Nakheel that posted a first half net profit of $208.8 million, up 36.5 per cent compared with the same period of 2011. In cahoots was Sorouh Real Estate PJSC, one of the largest real estate developers listed on the Abu Dhabi Securities Exchange, which reported a 29 per cent increase in H1 profits.
This news comes close on the heels of a Gulf Business report where we cited that the prices of villas in Arabian Ranches, Springs, Meadows, Jumeirah Islands and the Green Community are going up, while apartment prices are also rising in the Palm Jumeirah, Greens and Marina area.
This increase in profits and real estate prices are due to a confluence of factors, such as broader economic growth, followed by a thrust in sectors like aviation, retail, hospitality, tourism and foreign trade. Due to Arab Spring there’s been an influx in the number of new residents, especially businesses and wealthy investors, who are snapping up property here so they can provide a safe home for their families. While being a safe haven carries its advantages, there’s also a shift in investor confidence that’s adding to the overall allure of the property market.
And there really couldn’t be a better time to buy. Property mortgages are at lows, with banks like HSBC setting rates at 3.99 per cent. Even during the property boom in 2008 rates didn’t fall below seven per cent. With rents increasing by 10-15 per cent since the start of this year, the case for buying property before prices and rents become unaffordable is getting stronger.
Putting all this in perspective, where should you invest? Which are the most expensive and cheapest areas in Dubai to buy or rent? Is it worth your hard-earned money? And where is the real estate market headed?
To find out visit: Where to buy property