Dubai property bubble not set to burst

16 January 2007

Despite predictions, the Dubai property market is not set to burst just yet.

There is no doubt that prices have soared in recent years but experts say that the prices have nowhere near reached a peak and with the 200,000 units expected to be built in the next 2 years, there’s no sign of the market slowing, primarily due to its need to meet the demands of the overseas investors, and the ever increasing numbers of expats expected to move here.

10 years from now prices are expected to be as high as 50% more than in the current market, with the average price rise being 10-15% per year, and with the need for more affordable every day housing to the “real people” the prices will undoubtedly stay buoyant.

Mortgage rates in Dubai are relatively high still but the expectation is that as more competition comes to the market and the mortgage market matures, the rates will start to come down to meet the demands.With the benefit of a tax free environment, the rental yields in Dubai are as high as 15% which makes it still one of the Worlds most profitable property markets to invest in, and with its relatively crime free status and high standard of living, investors and second home buyers are still flocking here.

The recent announcement of the Worlds only sports city being built here has added a new string to its bow, and is expected to host numerous sporting events and house many world class athletes. The 50 million square foot development will incorporate 4 multi sport stadiums and a championship golf course, and with Manchester United opening a training school here and the International Cricket Council headquarters moving here opportunity is showing no signs of slowing down.