Dubai Property Market Cooling
Dubai Property Market Cooling
By Simon Tweddle
In Dubai there are now strong signs that the government is getting some sort of grip on the unwanteds of the Dubai building market - and concerning time as well. We have long viewed the marketplace as rather high risk. The marketplace has an unusual set of motorists and is not specifically the most transparent place to purchase home.
The massive quantity of building there certainly raises questions concerning oversupply, however apparently so far need has outstripped supply.
Rate development in some parts of Dubai has been reported to be a virtually unbelievable 79% in 2007, that is on top of already impressive growth figures in the previous years. High development is proceeding in 2008.
Now in mid-2008 the federal government is stepping in to control off-plan purchases, mortgages and are executing a whole raft of actions to cool the market. These are likely to do the job they are intended to do.
Like a few of the buildings in Dubai the home market has seemed to levitate. With high costs and more hefty federal government intervention I would certainly be even more careful of investing in Dubai compared to I have actually remained in the last few years. It remains to be seen where the Dubai building market will going next and whether the Dubai government can truly use their oil loan to transform a patch of desert right into one of the world's true industrial and economic centres.
In general, I would avoid Dubai as an investment place, high investment returns could be made elsewhere for much lower danger.
Simon Tweddle is Managing Director of a global residential or commercial property investment company based in Prague, Czech Republic. [http://www.propertyinvestmentinternational.com]
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