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:-
1.Dubai Population Growth
The Dubai authorities predict that Dubai’s population will increase over 10 per cent a year, reaching over 4 million by 2020. Over the next 4 years alone, the population is expected to Increase by 50%
2017 3,275,000 Forecast
2020 4,292,000 Forecast
Dubai and Abu Dhabi could be forced to revise population projections and increase investment in infrastructure, as projected population numbers for projects planned by developers are outstripping expectations.
2. Big Increase in Tourism
Dubai is becoming desirable as a safe holiday destination for many people all over the world. Tourism is further helped by the fact that Dubai has re-established itself as a worldwide hub. Many visitors travelling from East to West or vice versa now use Dubai as the stopping point and quite often spending a few days to a few weeks in Dubai. This effect is predicted to become even more prominent.
The current Dubai International Airport is destined to become the World’s busiest Airport by 2015 beating London Heathrow and reaching 75 million passengers per year.
The new Dubai World Central Airport at the other end of Dubai is still under construction and will have 6 operational runways and Double the capacity. The existing airport will also remain operational when the new one comes fully on-line.
3. Return in Confidence
The financial crisis in 2008 had a very negative effect on confidence with 60% drop in property prices. Now with the economy doing well (GDP 6%) and the above factors, there is a return in confidence which has resulted in property prices going up and these are now rising every month. Nobody can be certain about the levels of property growth, but most analysts believe that prices on ‘ready’ properties will rise rapidly and exceed the 2008 peak levels before stabilizing and growing at a slower rate.