The,Rising,Cost,Dubai,Properti DIY The Rising Cost of Dubai Properties
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Theres no doubtabout it - Dubaiis hot. Its attracted a lot of attention in the last several years, becoming asymbol of wealth, luxury, and innovation. Tourists, and those seeking torelocate, have been flocking there in droves, which led to rapid growth andrapid increase of property values and prices. Yet, whensomething seems too good to be true, it usually is. Even Dubai, which saw a 79% increase in propertyprice since January 2007, is now facing a bit of a housing slump. In fact, onesource predicts that property prices will fall by 10% by 2010. Overall, though,thats still a gain of nearly 70% in just three years! Thats an incredibleincrease by any standards. So what drivesthis increase in price? Several things: good old supply-and-demand, greed, andescalating costs of construction. Similar to other places in the world, thehigh prices of gasoline and oil (originally a boon to Dubai) are now being felt more deeply asproducts they need are increasing due to those same high oil prices. Supply-and-demandhas affected property prices because of that same skyrocketing interest in Dubai mentioned earlier.It has gained so much attention in the last several years that even theyunderestimated how many people would want to invest in their real estatewhichonly became available to foreigners in 2002. Knowing that thedemand is high for their work, some contractors and others with low integrityare being greedy and inflating prices, trying to make the most off the Dubai property boom. Unfortunately, thosewho are greedy are also short-sighted. If they get away with these inflatedprices now, theyre only working themselves out of business sooner. Others,less greedy but who can provide excellent work, will do well to under-bid theirgreedy counterparts and get the jobs. Some protectivemeasures are now being taken in Dubai,thanks to these rising property costs. Some buyers are being asked to hold onto their properties for a set period of time before trying to sell them again.This will hopefully bring some stability to Dubai and not merely make it an investmentflip market for owners.Some believeoversupply in Dubaiwill occur sometime in 2009, which will help fuel the predicted 10% price fallby 2010. It is hoped that no matter what occurs, Dubaiwill not encounter a massive hit such as Singapore did in the 1990s. For now, manyinvestors in Dubaiproperty remain optimistic and confident. They were able to build up a bitof a profit nest egg and some security before things started to shift. Theydont have as much construction to worry about and some of their properties areleased out or otherwise bringing in income, if not yet profit. Dubai continues to have great attractions for tourists and others wishingto see its man-made and natural Middle Eastern splendors. Dubai would do well to take advantage of itsmystique now, and attract more events to it, and continue to generate interest.Perhaps they should also spend some time getting to know what happened in Singaporebefore the bottom fell out from them!
The,Rising,Cost,Dubai,Properti