What Does The Future Hold For The Dubai Real Estate Market?

Anyone wanting to find out more about the Dubai property market could have done worse than pay a visit to the Cityscape 2008 exhibition last week, where over 70,000 visitors came to see the latest projects from the Middle East’s largest property developers.

As in previous years, we saw new project announcements ranging from the Nakheel Harbour and Tower development, where the worlds largest tower is to be built, through to new Podium Tower, which will soon be home to the world’s largest screen. In neighbouring Abu Dhabi, the Micheal Schumacher Tower even promised to turn the building design world upside down, by placing the penthouses on their waterfront development on the ground floor. However this does allow the residents the opportunity to park their boats literally inside their own living room. A nice perk, even if only for a select few well heeled individuals.

In keeping with previous years, we saw some of the world’s most innovative architecture at play at Cityscape, and once again the Dubai real estate market once again stated its intention to drive the emirate into the 21st century and beyond.

What was most interesting was the global context in which this Cityscape exhibition was held, as people throughout the world held their breath to see how the global leaders would deal with the financial turmoil which is paralysing so many markets. In the past, many people have suggested that Dubai is a unique market, and would be unaffected by the market dynamics outside of the emirate. The more cautious and considered reaction however of many of the investors at the Cityscape exhibition seems to be suggesting a ‘wait and see’ policy may be unfolding in the property market.

Overall, the signs are encouraging for the Dubai property market for as was suggested by His Royal Highness Sheikh Al Maktoum, the necessary fundamentals for a strong real estate market are in place. These fundamentals should not be understated, for they will prove to be the foundation for the next phase of growth of the Dubai real estate market as ‘New Dubai’ moves from concept to an impressive reality.

With strong levels of tourism and increasing numbers of companies seeking to relocate to the emirate, more people than ever before are looking to set up their home in Dubai. These increasing numbers of visitors to the region are slowly increasing the numbers of end users to the market, a vital part of the future growth of the market for property in Dubai.

Slowly Dubai is moving away from the short-term model that has been witnessed over the past few years. Investors are making more considered decisions, which is in turn forcing the developers to improve the overall standard of their offering. This coupled with the introduction of an increasing number of end-users to the market can only prove beneficial in the long term, and bodes well for the long term growth and sustainability of the property market in the region.