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Dubai real estate market heats up again. Is it a recovery?

After the real estate decline sent the Dubai real estate market into a tail roll with prices fell 50% at the least point. The market rebound is caused in part by lender from the Middle East and South Asia who are looking for a safe cover to estate their money. Proof of return was given further shot in the arm by much new luxury assets developments, some of which sold out in a matter of days. Recent data show that the number of assets transactions in the emirate increase 50% in the first half of 2012 liken with a year earlier. Villa prices in best parts of Dubai rose 19.9% in the first nine months of 2012, which is double the rate of boost seen in best central London’s prices over the same period. Overall, boost-adjusted prices rose 14.43% in the first nine months of last year. As extra proof that there is a local boldness in the strength of the recovery, the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, plan to develop Mohammad Bin Rashid City, the new development will include a park roughly the size of New York City’s Central Park (843 acres), a family entertainment center created by Universal Studios, and the “Mall of the World,” a retail complex that can accommodate 80 million visitors a year.  The complex will also include art galleries, golf facilities, more than 100 hotels, plus residential areas.  Although Dibai’s market activity is encouraging, there is also downside risks such abandon could dig not only the sustainability of the real estate recovery but lead to break in the wider economy, In other words, the beginning recovery could go off track.

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