Dubai real estate industry might have crossed the severe recession in past. A number of billion worth city development projects have been implemented to beautify Dubai. For instance, Dubai land is a US$64 billion worth project to make the city more glamorous. So, international investors are found pouring foreign currencies to buy real estate property to build up multistoried condos, and large buildings. Therefore, steadily real estate market in this city of Dubai is booming.
Downtime in Real Estate Market in Dubai Forced investors to Backtrack
After 2006, many European and Russian investors showcased their interest to purchase properties in different towns of this city. The government has changed the conventional property buying law for welcoming more international investors to buy land in Dubai. So, especially, the tourism industry is expanding fast. New hotels, resorts, and rentable houses are constructed to provide the accommodation to tourists. Housing market in Dubai ensures fast development with much more investment space for aspirant financers to purchase properties at competitive rates. However, the sudden crunch in the global economy might have forced two giant financial companies (Tamweel and Amlak) to take drastic steps when they offer loans to entrepreneurs. These two companies stopped approving new business loan or any refinancing loan scheme for investors. It is not hygienic to budding investors who need good loans to buy large real estate property in Dubai. Frankly speaking, it was a setback for international financers who went back to choose other countries for getting better offer. So, foreign investment in Dubai real estate industry slowly declined. So, estimated international property ownership rate made a steady nosedive in 2010 onwards comparing to the trend in 2008. Almost 50 percent house building companies and financers cancelled their fruitful projects. Big million worth resorts, multistoried apartments, and recreational establishments stood either half completed or left for auctioning. Many mortgaged real estate buildings and freehold land were foreclosed to gather proceeds to pay the financial companies or banks.
Dubai Real Estate Market Experienced New Sunrise with Lot of Opportunities
2011 is a new turning point to the national real estate market to get energy to flourish. The prices of buying houses seemed to skyrocket to touch 21.49 percent within 2014. So, many investors were seen buying property to build up houses for sale at higher prices. They were seen more vigorous to buy damaged and old houses for renovation. Later, theses well decorated apartments and buildings will be sold at higher prices. Foreign investors again look back to spot the best places in Dubai for purchasing land to construct new apartments and resorts. At a snail’s pace, the domestic housing market in this ultra modern city of the UAE struggled for survival from the deadlock. With the declaration of new agendas and resolution to empower foreign investors to buy freehold land in various towns /suburbs of Dubai, international financers revived their energy to visit this internationally standard city for investing more dollars in this connection. Tamweel which denied offering security mortgage loans or any financial assistance to debtors again came back with new money lending schemes. The volume of mortgage loans, advances and long term security loans increased by 1,.2 percent in 2013. As per updated reports published by Central Bank of the UAE, the trend in applying for good and flexible mortgage loans among investors/entrepreneurs accelerated with the innovation in the loan processing system. Authorized and reputed financial companies, and banks install mainframe computers with powerful broad band connection to process different loans easily.
Customers get online support to contact ‘the best financial company to have attractive mortgage loans without catch
In the case of rented property, the UAE government enforced a new decree (No. 43/2013-Dubai Decree) directing landlords and tenants to follow the guidelines to make the deals. With this new decree, previous 20 percent capping rate remains unchanged. However, the overall priority is given to landlords who are allowed to gear up the prices on lease property to rent. This new decree is also functional and applicable in the field of free zones for development including Dubai International Financial Centre or DIFC. More initiatives were taken by government of Dubai to regulate the prices in the real estate industry. The Decree 2 was introduced empowering land owners and real estate property leasing agencies for refixing rental indexes for smooth business deals. E-registration or Ejari was launched to minimize practice of fraudulence and speed up the transaction process. So, Dubai is now a leading competitor with a good opportunity for international investors to invest billion dollars to fuel up the real estate market in this wonderful city of the UAE.
