Buy Property in Dubai or Not?
Source: https://www.construction.am
#uae #dubai #realestate #economy
Invest in property in Dubai was pretty profitable a few years ago, and some real estate companies, even today, do not cease to advertise the desirability of investment in UAE real estate market, but ...
A property boom in Dubai collapsed at the end of 2008 when it was hit by the global financial crisis. According to a poll by Reuters, Dubai house prices, already nearly 60% off their peak, are set to drop another 10% over the next two years, as new units are released onto a market awash with supply. Prices in Dubai and Abu Dhabi are to fall 5% and 10% respectively in 2011, according to the poll, which was taken over the past week. The decline will continue in 2012 with prices falling in both cities about by 4%. Even the most optimistic analysts do not see Dubai's residential market bottoming out until the second half of this year at the earliest.
Debts of some development companies have already crossed over billions of dollars. In the latest sign the property market is struggling, the Abu Dhabi government has stepped in with a $5.2bn aid package to the state's largest developer Aldar Properties to help the company meet looming debt obligations. Some of the major UAE developers have already switched to the fast growing eastern markets, towards India and China. The fate of the oversupplied real estate market of UAE remains still unclear. Who knows, maybe those 2 years will be best for property acquisition for the people who really need it?
The situation on the real estate market in Armenia is partly similar to the Emirates, but there are some differences. Since 2009, there was not slump in real estate prices, but gradual decline. Falling prices naturally led to inappropriate investments in real estate as a means of raising capital, and positive growth trends are not observed. Supply of housing in older buildings and in new ones has increased, the number in need of housing is rather high, but the financial situation of the population and the high interest mortgage loans do not yet allow the real estate market stirring up.
A property boom in Dubai collapsed at the end of 2008 when it was hit by the global financial crisis. According to a poll by Reuters, Dubai house prices, already nearly 60% off their peak, are set to drop another 10% over the next two years, as new units are released onto a market awash with supply. Prices in Dubai and Abu Dhabi are to fall 5% and 10% respectively in 2011, according to the poll, which was taken over the past week. The decline will continue in 2012 with prices falling in both cities about by 4%. Even the most optimistic analysts do not see Dubai's residential market bottoming out until the second half of this year at the earliest.
Debts of some development companies have already crossed over billions of dollars. In the latest sign the property market is struggling, the Abu Dhabi government has stepped in with a $5.2bn aid package to the state's largest developer Aldar Properties to help the company meet looming debt obligations. Some of the major UAE developers have already switched to the fast growing eastern markets, towards India and China. The fate of the oversupplied real estate market of UAE remains still unclear. Who knows, maybe those 2 years will be best for property acquisition for the people who really need it?
The situation on the real estate market in Armenia is partly similar to the Emirates, but there are some differences. Since 2009, there was not slump in real estate prices, but gradual decline. Falling prices naturally led to inappropriate investments in real estate as a means of raising capital, and positive growth trends are not observed. Supply of housing in older buildings and in new ones has increased, the number in need of housing is rather high, but the financial situation of the population and the high interest mortgage loans do not yet allow the real estate market stirring up.
