As the residential property market in Dubai Wohnung kaufen continues to mature, the demand has surpassed the supply in the past two years; it is hardly a surprise that Dubai real estate property prices are increasing so swiftly. According to a recent report from EFG-Hermes, the Regional Investment Bank, there is not going to be any decrease in the property prices of Dubai until 2009.
Lack of Completed Projects
It has been noticed that the delivery of completed projects in Dubai this year has touched only 11,000 units, whereas the expected target was around 57,000 units. This clearly points to the fact that Dubai real estate market is witnessing a far slower pace of events. In other words, demand continues to exceed supply in Dubai real estate market.
Most of the real estate experts have revised forecasts of housing unit supply for the next two years on the basis of difference in demand-supply. The estimated forecast for 2008 is around 64,000 while for 2009 this number goes up to 68,000.
More Demand than Supply
With increase in Dubai population, the demand for property is also increasing with every passing day. If the recent trends are anything to go by, the population of Dubai would be around 1.9 million by 2010. The population of Dubai at present is around 1.4 million and if it continues to increase in the same rate, there is a good chance that the demand for housing in Dubai would increase up to 45,000 to 50,000 new units annually.
Average Pricing in Dubai
According to media reports, supply in Dubai Haus kaufen residential property market this year will be somewhat restrained. However, everyone is expecting 2009 to be the peak year for supply in Dubai real estate market. There are some reports in media that there is going to be a 10-15 percent increase in average prices of properties this year.
Next year, there is going to be an increase of around 5 to 10 percent in the real estate properties of Dubai. In 2009, prices of properties can dip a bit but it will depend solely on the speed at which developers build new units. Regarding the rental prices of Dubai properties, there is a strong possibility that the rental growth rate is going to be the same as it is currently.
All in all, one can say that Dubai real estate property prices are increasing so swiftly because supply has surpassed demand. With real estate developers of Dubai working overtime to complete new units, there is a good chance that prices might go down a bit by the next few years.
What You Need to Know About Dubai Real Estate
Are you thinking about buying Dubai real estate? Are you pondering about entering the Dubai property market in 2012? If you answered yes in any of these two questions, then here are 10 things that you will need to know if you want to enter the Dubai real estate market.
- Although the Dubai property market in 2012 had hit a rough patch for the last few years, the declining prices of properties will finally peter out this year and increase in the prices is expected to go up this 2013. That said though, Dubai is still considered as one of the fastest growing cities of the world and owning property here means that you can get experience that growth first hand.
- If you are a foreigner and you would like to live in Dubai Wohnung kaufen, you need to avail of a residency visa. A Dubai real estate residency visa can be acquired through your developer. However, do note that this type of visa will only allow you to reside in Dubai, it will not give you the authority to work and do business in the country.
- In 2012, it is being forecasted that for the rest of this year, tenants will have a better position in renting spaces as the price of rents will decline. This is true for both living spaces and office spaces. The decline in office space prices will be beneficial to Dubai as a whole because the Dubai property market in 2012 will become more enticing to multi-national firms compared to other Middle Eastern countries.
- When buying villas, condominium units and apartments, make sure that the contract you are signing to buy the property indicates that there is a one-year clause for free maintenance in case there are issues that arise when you newly transfer in that property. Also make sure there is a defect guarantee on the structure for at least 10 years, to ensure that the real estate that you are buying is of high quality.
- For 2011, the residential sector of the Dubai Haus kaufen has seen an improvement of 64% in terms of sales. On the office market front, almost 58 thousand square meters of brand new office spaces were entered.
- If you are buying a property from a previous owner instead of a developer, make sure you ask what the original price of that property is when the initial buyer bought it. This will allow you to see if the price they are charging you now is well within the average of the current Dubai property market in 2012 rates.
- When buying real estate in Dubai from another owner to you, make sure you are prepared to cover for transfer fees, unless the owner says based on your agreement that he or she will cover this. The transfer will allow you to transfer the ownership of the property to your name. Transfer fees reach up to 7% at times. Thus it is better to make sure the transfer fees are covered by the original owner. This is a standard percentage in the Dubai real estate world.