Real Estate Boom in the Middle East…
will continue for at least another 10 years. Experts view is that if there is no natural calamities this trend will remain buoyant for the next decade and it will be difficult to get hotel rooms to residence to live in next five years.
As we saw in the last 4 to 5 years the real estate market in the Middle East, specially in Dubai, Abu Dhabi, or adjacent areas have been booming. There is no end of construction. Due to over construction the supply of building materials becomes even scarce. The prices of such commodities have gone up. Example cements are not found, still price is sky rocketing. Builders face difficulties to hand over their buildings on time and the cost is so, high that they can seldom make any profits. But the demands of new apartments in some area are so great that it has increased even 500% to 1000%. Buildings are not completed, yet renting or leasing is done in no time.
The prices of land and the apartments have gone up beyond control. Yesterday I went to check some apartments to have a look inf I could buy one, I found it is so high that beyond my reach. While the agents advised that the rent is about AED80,000 to100,000 for a normal mid sized two bed apartment. In some areas of palm the price per sq. foot residential lands costs about AED18,000 or move.
This is surprising as 10 years back we saw in those area only sands and no construction while now we do not see any place that is empty to put our feet. Why and how it happened no one knows. But their were some good initiatives from the ruler or the developers who advised to go ahead to resell the real estate. Once it was experimented people are lured to buy heavily, so the price is gone up. American citizen Mr. Donald Trump even put his hand on the Dubai Property market. And other celebrities have already bought their own towers and some even put for resale.
This made the market more upward trend. We do not know what will happen in the next 10 years from now if this trend sustained. Investors may see the feasibilities by themselves before buying any properties here. Read more…
Dr Altaf Hossain is an article writer. You may copy the article provided my signature and permission from EzineArticles.com is taken.
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