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Dubai real estate continues upward trend

15 Nov 2013

The statistics uncovered by the Dubai Government's Statistics Department, tell us that the emirate of Dubai cherished an economic growth of 4.9% in the first half of 2013. For a market that was struggling a year or two ago, Dubai's property sector played an important role giving its economy a nudge in the right direction.

The property market of Dubai is gradually recovering from the crash of 2008 and, from the beginning of 2012, the realty market has been exhibiting upward trends. Moreover, the property portals like Bayut.com are contributing a lot to the progress of this industry. You may think that this immense resurfacing of the property sector may lead to another property "boom and bust" cycle, but, in my opinion, Dubai of today is far smarter than the Dubai of 2008. At present, the government of this happening city seems to be playing safe and will go to any length to avert a crisis.

Now you might be thinking as to what enabled Dubai real estate to shake off the effects of the recession so quickly. I will give some of the reasons which led to such sharp rises in rental prices of apartments in Dubai:

Rising interest of investors: According to a report sanctioned by Gulf News, the property market has had an immense flow of capital from countries like Iran, Egypt, Syria and Pakistan. The report further mentioned that Dubai real estate now attracts institutional buyers as well. In the first half of 2013, the real estate sector of Dubai was the recipient of around USD14.5 billion (AED 53 billion) in investment. So, keeping in context the rising interest of investors, the real estate sector of Dubai is expected to bloom further during the coming months.

Transparency in the sector: As I mentioned before, the Dubai of today is smarter than the Dubai of 2008; its real estate sector is more transparent now. Dubai Land Department seems to be giving much heed to transparency. Khaleej Times, in one of its reports, uncovered the launch of a new real estate portal by DLD (Dubai Land Department). The introduction of this innovative idea is likely to guarantee credibility and transparency in data, keeping in line with the vision of the Dubai Government.

Moreover, Doing Business Index of 2013, as sanctioned by the World Bank, ranks DLD (Dubai Land Department) at fourth place in the world for easing the process of property and real estate registration in Dubai. And the same index ranks Dubai Land Department the best in the Arab world for the services the department offers.

Cautiousness of authorities: In my view, Dubai has realised the importance of its real estate sector. It wants the real estate sector to grow in a poised manner, leaving behind the threats of the boom-and-bust cycle. Emirates 24/7 recently unveiled the plan of the DLD to issue seven new property laws to curb the speculations.

These laws will be implemented in a period of two years. Furthermore, it was disclosed that to control the situation further, the Dubai Land Department has doubled the property transfer fee. So, the cautiousness of related authorities is also playing a major role in backing the continuous journey of upward trends in Dubai real estate.

Massive support from the tourism sector: Dubai is an attraction for a large number of tourists. The Dubai Hotel Establishment Statistics Summary 2011-2012, tells us that there was a growth of about 17.9% in revenue earned from hotels and hotel apartments from 2011 to 2012. The real estate sector provides strong backing to the tourism industry by providing a range of accommodation options to the tourists and, in return, the real estate sector achieves its objectives of growth and success.

Shehryar Qureshi

About Shehryar Qureshi

Shehryar Qureshi is a leading professional writer who likes to write about facts and real estate trends for property investors. He has been working in the real estate sector for many years and has been sharing his knowledge about investing trends for properties in international property management.