The latest Dubai Property survey by Openshore Property shows that rising prices in Dubai with lower rental yields in the prime sea-side areas are forcing investors to look inland where property prices are lower and rental yields higher. The same trend was observed when property prices rose in a similar manner in 2006 to 2008.
3 Reasons Why Dubai is BOOMING
The property market in Dubai has now entered an aggressive growth phase with prices rising every month. The underlying causes for this can be summarized as being due to 3 main reasons:-
-Dubai Population Growth
-Big Increase in Tourism
-Return in Confidence
These 3 reasons are explored further:-
Last year, about 8 months ago, we told you that the 2nd Dubai Property Boom had started and we were the first company to tell you this.
At the time we expected property prices to rise fairly quickly over the next few years back to peak 2008 levels and then go beyond these before slowing down. This indeed is happening! Prices are now rising every month.
But Will it be another Boom and then Bust? Continue reading
You will remember in our “Dubai Property News” bulletin in April 2012 that we predicted significant price increases due to supply/demand we were seeing first hand in the property market (despite the corporate ‘analysts’ at the time still predicting further price reductions – their information is always out of date)
Our belief now is that the 2nd Dubai Property Boom HAS Started. And please remember – We told you this first!
The past 12 months have been worrying for many Dubai property investors. Property prices have fallen by over 50% and many off-plan projects (for which customers have typically paid 10% to 40% on a payment plan) are severely delayed and on hold.
Here is the Timeline
Dubai property prices have been rising ever since we have been involved with Dubai property. Whilst everyone is routinely warned that property prices in general can go down as well as up – no-one ever imagined that this would happen in Dubai (and that includes us).
From early 2003 to 2007, the Dubai property market has grown every year. Property prices increased 2.5 fold during this period with average annual increase of over 25%.
Over the 12 months from September 2007 until September 2008, property prices increased by over 40% due to intense demand from investors all over the world. Prices on off-plan property in neighbouring emirates such as Ajman and Ras-Al-Khaimah also increased by similar percentages.