Dubai Real Estate: A Road Ended Or A Journey Beginning?

A glittering cityscape, a mystical fairyland with towers rising high into the sky, the playground of the rich and famous, the business hub of the Middle East, a desert principality by the shimmering blue waters of the Gulf, a manmade paradise?there is no one single description that has been coined that can encapsulate the essence of Dubai in a single catchphrase.

Yet is this paradise really a Utopian fantasy or is the story of Dubai and its properties merely a facade to conceal a far more grim reality? The real estate crash in 2009 changed several ground realities in Dubai real estate. Yes it continues to remain a glittering metropolis with excellent sunny weather, an appealing exchange rate, a swinging city that is cosmopolitan in flavor and an epitome of globalization. Dubai is a city that has reinvented itself to suit the needs of all cultures and conventions. It continues to be a haven for retired expatriates, or even for those who wanted safe and secure returns on their investments. But there have been paradigm shifts in perceptions, in how the world views Dubai and its real estate. Wariness has crept in, a disenchantment with what seems to be merely an ostensible appearance. The crash in Dubai markets sent ripples of unease through investors around the globe .Dubai real estate no longer seemed the safest avenue to park excess funds. Some of the gloss had seemed to have worn off plush addresses like the Jumeirah Beach Residence, The Villa and Bay Avenue. These much sought after addresses were no longer the flagship premises of a booming Dubai real estate market.

Yet there are those who view this so called crash with a more realistic and practical view. They say that the Dubai real estate had become a conglomerate of property asset bubbles that were long overdue bursting. The crash was not really a catastrophe, it was indicative of a correction that was six years in the making. A six year long boom that had morphed endless drifts of sand dunes into some of the most prized Dubai real estate addresses and turned a desertscape into a tribute to unstoppable capitalism came to a grinding halt in 2009. Projects were shelved and promoters were cagey of continuing ongoing additions to the Dubai real estate market.

Whereas earlier the Dubai real estatescenario was dominated by the ‘wow factor’, today there is a healthy dose of practicality that has made its place. No longer is real estate in Dubai merely catering to the uppermost echelons of the rich set. There has been a perceptible shift to middle class and even lower income group housing. The spectrum has broadened to include these hitherto unexplored market segments. Moreover, Dubai real estate is now aiming for as much local investment as can be procured. Excessive dependence on foreign funding has tapered down. Instead of investor driven property, there has been a move towards end user driven property. Thus actual homes are being built for families who will actually and definitely shift in.

Today Dubai has picked itself up and is once again beginning its way to success. Dubai real estate still is prized by many?maybe not the same investor profile as before, but it is a more real scenario, one that will survive the vagaries of the global trends. Dubai real estate is slowly and surely making its way back to the world stage, in a different avatar no doubt, but no less important.

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