Dubai Real Estate Reaffirming Investors’ Belief

The world has faced a deadly economic blow very recently and now is going through a process of recovery. There have been scores of outstanding performers in the global market that have suffered from this massive cut in the spending and capital investment trends. Most of them are still unable to cope with the issue as we all know the situation that the Eurozone is going through and the problems that the major partners of European Union are facing due to its crisis. This recession though has ended and the economies of the countries have also begun to loosen up with time but as the public is not yet ready to believe in the market, they still appear to be cautious in their approach.

Same was the case with Dubai real estate which was one of the major gainers from the boom of 2005-06 and also had to face the same situation as the world had to face in the second half of 2008. A number of projects were hindered by this recession and property big wigs of the state were left with no serious projects at hands. Developers like Nakheel were also damaged big time and they were unable to pay their dues back to the investors and the sheer cuts that they had to make on the expenditures, left them with no room for expansion. Same was the case with the rest of the developers and it won’t be incorrect to say that there was a dearth of new projects and investments in the city.

However, the market began to show positive trend in the second quarter of the year 2011 and it has continued to show improvement ever since. The recent upsurge has been mainly confined to the posh areas of the city and the main beneficiaries of it have been property projects like Dubai Marina and Arabian Ranches type of property markets because the investors see better prospects of getting favorable returns from these areas. According to the latest survey as well, Dubai properties are considered to be among the top five in the world and certainly as the global situation improves, the investors’ belief in Dubai property will also be directly proportional to it.