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Conditions Conducive For Picking Up Cheap Properties In Dubai
Now is perhaps the time to pick up cheap properties in Dubai. As more projects are completed properties in Dubai are expected to get cheaper. Many investors see cheap properties in Dubai as an opportunity. With a booming economy and strong market fundamentals, long-term returns on investment looks good by all accounts, and buyers hope that cheap property buys in Dubai will give a windfall.
EFG Hermes indicated at the start of the year that over 64000 residential units would enter the market in 2008. This additional supply may cause properties in Dubai to go cheap. But will this dip be as significant as in the US and UK? Industry experts think not. Historically market trends have always contradicted warning of properties in Dubai going cheap. According to the UAE Ministry of Economy Dubai property is the largest non-oil contributor to the economy. With the level of investment in the market the government is keen to ensure that the Dubai property dream is not derailed.
Dubai’s rapidly growing expatriate community ensures the health of the property market. Less talked about is the need for cheap properties in Dubai. Semi-skilled workers look for cheap properties in Dubai and it is interesting to note how both ends of the market are catered to. Exclusive developments monopolise all the hype, yet there are vast residential complexes that sell or lease cheap properties in Dubai. A report on UAE property by investment bank Al Mal said the gap between cheap properties in Dubai and high-end real estate was 165% in 2007 and will widen.
Dubai is also cushioned by movement of equity from depressed markets in the West. Properties in Dubai are cheap compared to their equivalents in Britain. Al Mal expects the upswing in real estate to go beyond 2010 despite temporary dips and lure of high returns on relatively cheap properties in Dubai are very tempting.
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