Real estate prices attract investors in Dubai

Despite being a growing market, the property market in Dubai has suffered a lot from the recent economic climate, after achieving unprecedented growth levels regarding supply and demand, as well as high rent prices.

Today, property prices are at their lowest levels, but Dubai is garnering the attention of numerous local and foreign investors who are looking to benefit from the decline in prices, the high quality of properties in the emirate, and its sound legislation and infrastructure.

Speaking on the subject, Eng. Khalid Esbaitah, CEO and Managing Director of Al Mazaya Holding, said:

"There are a number of factors that any developer considers when embarking on an investment in any region in the world, and perhaps the estimated revenues of particular investments is what drives investors to go forward with the investment or to draw back from it. However, market movement, plot prices, infrastructure and legislation frameworks are the main factors for the success or failure of an investment. Bearing this in mind, we can see that the market in Dubai has all the right factors to become a sought-after investment destination, and that it is preparing for a new and organized economic leap that will compensate for the slowdown period."

"With large investments and top-notch projects, Dubai really has all the right elements to rejuvenate investment and attract both local and foreign investors. The correction being experienced by the Dubai markets is a natural thing, and it presents a golden opportunity for investors who know how to make the best use of it. As such, Dubai's market today is really a place for investors," Esbaitah added.

He went on to say that right now property prices in Dubai are at their lowest-ever levels, and that they may continue to decline over the summer period, but in a much less remarkable manner that over the past nine months. Therefore, the current period could be the perfect time for investment, because Dubai markets are moving towards stability, and prices are expected to rise again after suffering from a fairly long period of decline.

Esbaitah noted that studies conducted by Al Mazaya Holding indicate that current economic conditions present long-term opportunities for real estate investors, especially with the many alternatives that are available to the investor, such as the quality and location of plots and Dubai's ability to recover from the financial crisis more quickly than any other market in the world.

"We expect real estate activity to return to Dubai after the summer period, as investors are studying their investment options during this period to start their businesses after the summer holidays. Therefore, Q4 of 2009 will a promising period, as it will witness the return of real estate activities," he said.

Esbaitah concluded by saying that his company is conducting a number of studies into the best way to take advantage of the current economic situation. Al Mazaya is also studying a number of investment opportunities, taking into consideration the right time and place to embark on an investment. The company is also preparing to implement a number of investment strategies and plans that will make use of the investment opportunities currently available in the Dubai property market.