How,Will,Dubai,Affected,Its,Gr DIY How Will Dubai Be Affected by Its Growing Property Market?
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Dubai, located in the Middle East, has invited foreign parties to invest inreal estate since 2002. Since that time, interest and investment in Dubai property has beenphenomenal, leading to a 79% increase in property prices since the start of2007, according to Morgan Stanley, a global financial services firm. So upuntil very recently, the growing property market has seemed to be nothing butpure bliss for Dubai.The money has been coming in buckets, the work has been plentiful, and thedreams for a bright future have been increasing for its inhabitants. If thingscontinued to grow the same way, it would be nearly a Utopian society. Everyonewould be able to obtain a livable wage and take care of themselves and family.People would steadily earn more income, and since things were going well, wouldprobably continue to re-invest their money in Dubai. It would be a positive cyclebenefitting everyone. For sometime now, the rising oil and gas prices in the rest of the world have made forhappy times in Dubai.But now, it is catching up even with them. The rising prices of gas and oilaffects even the supplies that Dubai needs to continue its property market growth. Importing these supplies,with inflated prices due to those oil prices, is now eating into Dubai wallets. Utopiawill have to wait. This isnot to say that things are critical. There are still many benefits for the citizensof Dubai.Increased tourism and investment in property is still helping to keep peopleemployed, thereby keeping food on the table and dreams alive. But Dubai will soon need tofigure out how to stabilize their market. If Dubai were to continue togrow and grow, they would soon find that some do not like living in an areawith that much population. People will move further and further out untiltheyre not in Dubaiat all. Therefore, they will need to know when to say when. Knowingwhere to draw the line is difficult, especially when it feels as though youreriding a tidal wave of money. Knowing, also, how to level off when things startto fall is difficult and requires planning now. Since theproperty market in Dubai has recentlyexperienced a bit of a cooling period, realtors and other property investorsare now coming up with strategies to prevent a full-out property bust, akin towhat happened in Singaporesproperty market in the 1990s (it fell 80% in only 18 months!). Dubai is looking at tax strategies to keep investors longer-term, requirebuyers to keep their properties for a minimum amount of time before trying tore-sell them, and some are looking more at leasing and renting as options tocontinue to bring in profit for the region. Changeswill also soon come to Dubaismortgage laws, as announced in August 2008. These changes are also meant tobring stability to Dubaiin the coming years. Despitechanges, the world will be watching Dubai carefully over the next several years to see if whats hot now continuesto stay hot, or cools and crumbles.
How,Will,Dubai,Affected,Its,Gr