After a fantastic 2013 the real estate sector in Dubai is looking at the year 2014 with enhanced expectations. The promising tidings of the past year were inspiring. Property analysts are looking forward to judge whether the momentum in the property market is a Bull Run or a bubble burst.
As for early trends, the international agency Fitch Ratings stated that faster recovery in the real estate sector of Dubai had been aided by new projects and hosting of World Expo 2020. It asserts that the current trend of rising residential prices will persist for long.
The real estate sector is now benefiting from the influx of all kinds of investors in Dubai and its vibrant tourism sector. The turmoil in parts of Middle East has also reinforced the value of Dubai as a peaceful destination for investors.
Catalysts of Growth
Dubai has seen its property prices rising by 30 percent during 2013 in its prime areas. But in 2014 the growth is expected to exceed the previous. This growth will be driven by the new real estate projects which are going to attract more investments to the Emirate in the coming years. A leading global bank recently noted that the rising demand for Dubai’s properties is an indication of the rebuilding of confidence in the sector since 2011. The trends of 2014 will be clear soon. But early signs point out that the property market of Dubai will be buoyant in 2014.
Dubai’s Land Department is proactive and many laws are coming up to provide backing for the healthy growth of the sector and keep speculation at bay. The rent cap introduced in Dubai along with a hike in property transfer by 4 percent is a case in point. As a result, investors can funnel investments and crystallize returns. But Dubai cannot constrain the growth of the realty sector as it is a lifeline of the metropolis. Winning of World Expo 2020 have only added more glitter to the projects in Dubai.
Hope is that the property market of Dubai remains bullish in the coming days, not only in the current year, but in the coming years too so that not only the realty sector, but the overall image of Dubai as the host of World Expo 2020 gets a bigger boost.