Dubai real estate market to achieve sustainable balance by 2010
According to MAG Group Property Development, real estate developer headquartered in Dubai, the next lot of property supply coming in 2009 and 2010 may help bring stability to the Dubai realty market. The booming of real estate market in Dubai and the Northern Emirates is expected to achieve a more sustainable balance between investors and property owners by 2010.
Mohammed Nimer, CEO, MAG Group Property Development, said, "Driven by Dubai's frenetic and speculative real estate market, the UAE' property market has seen unprecedented growth in recent years, easily outpacing the rest of the Arabian Gulf states combined. The construction boom in buildings is about to peak in 2009, with $3 billion worth of real estate either on the drawing board or under construction".
The MAG Group CEO says actual home owners currently account for just 30% of the properties sold at launch. Realty sales are still being dominated by short-term investors and not end users, resulting in inflated prices as units are ‘sold-on' with a premium numerous times prior to completion. The Dubai real estate market has grown in 2008 with the rate of advance in prices accelerating to a level not seen since 2004. Nimer believes that the prices will continue to go up for the foreseeable future but the non-speculative case for buying real estate - to save on rent and protect capital against inflation - is becoming stronger.
