World of Property & Real Estate

There has never been a better time to buy property in Dubai. Rates have been falling drastically since 2008, and investors are jumping on the Arabic state with it’s huge potential for property income.

Dubai real estate prices fell by 6 percent in the third quarter of 2010, and the UAE’s largest construction firm, Arabtec Holding PJSC, reported a staggering 96 percent drop in profit. Other companies such as Deyaar Development also reported huge losses. Furthermore, many predict that Dubai’s recovery is some way off.

Saudi property billionaire Prince Alwaleed – who has many interests in the region – predicts several years of decreasing property prices before Dubai hits rock bottom and begins a recovery.

Rental prices have been particularly badly hit in Dubai Marina, Jemeriah Lake Towers and The View, whilst landlords with huge numbers of properties have started undercutting market prices, causing further rate falls – by up to 38% in some cases.

Dubai has put itself on the real estate map in recent years, building record-breaking monoliths, palm-shaped islands and man-made archipelagos. It’s attractive no-tax model and highly modern infrastructure has drawn international companies to the emirate. Huge quantities of cash were borrowed to finance Dubai’s more ambitious projects. But with the onset of the global economic crash in 2008, property prices plummeted and foreign investment dried up.

It may be time for Dubai to start thinking the unthinkable in order to pay off their debts: income tax or corporate tax might be the only way out for this great centre of trade and tourism. Reforming the UAE’s residency laws is one idea being floated, since the current set-up encourages transient expatriate white-collar workers who have no personal investment in Dubai, only a view to get in, make a tonne of cash, and move on. Residency rights do not often extend beyond 3 years under the current law.

It’s all good news for buy-to-let property investors, though – or at least those who can afford to bide their time. The slump will level out in time, and the market will undoubtedly do what markets do and improve itself. If you are interested in looking at property in Dubai, visit the DialAFlight website to book a very reasonably priced flight to Dubai and get house hunting.

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The rising prices of everything have affected Dubai and its financial situation. The ever rising prices of properties and Dubai real estate are on the top of financial crisis which Dubai is facing.  It becomes really difficult for people to afford there house on rents and buying property. Dubai was considered as the safe haven for about previous forty years but now the world crisis in which inflation has contributed a lot due to rise in patrol and petroleum goods prices has affected the Dubai’s economy. Everything from day to day usual products to luxuries prices has increased at about more than two percent ratio. We can not neglect the fact that this modern city is built by the loans taken from Swiss banks and the interest rates are increasing with every passing year. So it is really hard to say that Dubai can survive if it does not make a good plan to stabilize its economy.
The true problem that is hitting straightly the financial issues of Dubai is the property and real estate business.  Dubai is one of the most expensive cities to live in and the labor class of Dubai is usually from the third world countries like India, Sri Lanka, Bangladesh and their purchasing power is not like others and it is impossible for them to buy a property or place to live in Dubai.  They can hardly afford the basic Necessities due to increase in prices of the world so they can not buy a home in Dubai.
Dubai is oil producing market and the oil reservoirs are slowly diminishing and it can be a situation very near when Dubai has to buy oil from other countries and this can really be hurdle for the economy of the Dubai. And in case it happens than Dubai will remain no more a perfect place to live and enjoy life because everything from head to toe will really go on high price.
Dubai really needs now to make new policies and static’s to balance its financial crisis. Government of Dubai needs to hire good economist to make its economy stable. Otherwise within five years the Dubai economy can go in really worst condition. So proper planning to deal with financial crisis in Dubai is very important issue  so that it can face other Economical crisis for long time without disturbing the every day life but if it does not it is totally destruction for Dubai.

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