New Opportunities In The Dubai Property Market
Dubai and its stunning property developments were in crisis during November 2009
as the Government-backed Dubai World Conglomerate announced that Dubai was unable to reapy debts of $22 billion. Dubai World asked their creditors for further time to repay the debt and then requested to suspend debt repayments. Dubai was given a $10 billion lifeline from Abu Dhabi last week which was the third loan in the year.Crisis talks are happening quickly to tackle their huge debt problems and to establish a way forward on how to pay it off and stabilise Dubai's economy, and this situation has inevitably impacted the Dubai property market, although not necessarily in a negative way. Those property buyers that have bought in the past year, with high mortgage rates and property prices, will have to hold tight until the economy settles down, and will most certainly be in negative equity. Those buyers that bought before 2007 will be safe, and may even make a profit if they chose to sell.
For those buyers and investors who are interested in picking up discounted deals in commercial property in Dubai as well as Dubai apartments and houses, and who have large deposits to put down, now is the best time to pick up a bargain and to secure Dubai property stock for future investments. Dubai property prices have dropped by as much as 50 percent from the property peak in the latter part of 2008. Some financial, commercial and retail property developments are now on hold or have been cancelled as Dubai makes an effort to stabilise its economy and financial position.
Dubai was racing ahead with a significant number of developments, and there were also attractive visa terms available if they bought a Dubai property. However, the bubble has now burst, and Dubai's first priority is to resolve its current financial crisis and determine how it is going to move ahead and reassure nervous global investors and organisations who have already invested millions into the Dubai property market. Another problem with the Dubai property market, was its oversupply of developments, and the speed at which the development happened. Most of the property purchases were bought speculatively off-plan, and there was a surge in overseas buyers wanting a slice of the Dubai property market. This was an ever-growing bubble waiting to burst, which has now spectacularly happened.
However, it's not all bad news. Dubai still has a strong tourism and retail industry, and its bid to become one of the world's most important financial centres can still become a reality if they can reassure global markets and companies to stick with them and invest in them. Abu Dhabi's loan has helped to calm nerves, and with other help, over time Dubai can recover. Dubai property is a very attractive deal currently, although purchasers should hold on to see what plans are offered to help Dubai recover.
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