Dubai Realty segment readies itself for a second coming

The Desert, Leisure Options & Realty are the three most discussed things in Dubai. While the first two are tempting enough, it is the third and the final one that is going to be in focus today. High expat population, the welcoming nature of the locals, a progressive government and high quality infrastructure have all contributed into the transformation of Dubai. Over the years, this sleepy desert village has blossomed into a multi-faceted extravaganza that is unparalleled in the world.

There is one thing that everyone needs and Dubai is no exception to this – it is housing. Whether it is owned or rented, the realty market in Dubai is characterized by constant churn as the demand-supply equation changes. The past couple of years saw one of the worst times for the realty situation in Dubai. Prior to this, the rentals had been skyrocketing, fantastic developments were being announced and completed every other day and people were in a good mood overall. Then the economic crisis happened and the market bottomed out.

The Dubai property segment saw its fortunes being turned upside-down almost overnight. Rentals plummeted and even properties in hitherto prime areas were left waiting for buyers/renters.  This depressed state of affairs saw many a shakedown in the industry. Businesses folded up, tenants started defaulting on payments, and projects fell behind schedule and so on.

But as is the case with every industry, the slowdown too had to pass. Since the beginning of 2012, the realty scene in Dubai has been showing signs of a comeback. Maybe it was not to the levels of yore but definitely to a stage where it is profitable for all the stakeholders that were involved.

Leading from the front are the prime areas or those that have a sound backing in terms of quality construction, right sized accommodation stock, connectivity in terms of infrastructure and social surroundings, etc. The Dubai Metro is facilitating the development of new growth centres that is taking the load of the already saturated, existing locales. The authorities too are pitching in with a clarification on the existing rules, better enforcement, levying of stringent fines and other punitive measures.

All this activity is part of a confidence building exercise where everyone is meant to benefit. So the next time, one is ready to fly into Dubai, remember that things may seem to be a little tough, but they are only going to get better.