Dubai Real Estate Industry
/The Evolution Since 2003
The Evolution Since 2003:
The Dubai real estate industry has gone through three separate
stages thus far since 2003:
First phase:
The introduction of the freehold concept in 2003, which
took approximately the entire year for the concept to
be established, accepted and to gain momentum.
Once the concept of freehold ownership was introduced,
due to numerous uncertain elements attached to the idea
and because the concept was introduced by only one emirate
amongst the seven, the idea was not accepted nor established
within the market as it was expected.
The launching of publicised projects such as; Palm
Jumeirah and Emaar’s Springs and Meadows, with strong
support and endorsement by the Dubai government, gradually
injected confidence and enabled the market to be more
receptive and secure about the freehold concept.
This gradual trend is vividly displayed by the then
market rates as stipulated to each project.
Shaikh Zayed Road in Early 1980's
Shaikh Zayed Road Today
Second phase:
The explosion in 2004, which primarily created a sellers
market for the entire year.
Once the market was convinced that the legal aspects
of the freehold concept were secured, considered and supported
by the government the reaction was totally unexpected.
By the middle of the first quarter 2004 the market became
a pure sellers market and remained so for the duration
of 2004.
During this chaotic but very optimistic time the only
concern for the buyers was to secure a property as soon
as possible and with very little regards to completion
dates, quality and the developers resources. This adversely
affected the market with the prices becoming a runaway
train.
Dubai's Property
Market- Buyers Composition
Third phase:
The gradual softening of the market and the changing
of the market characteristics from the seller to the buyer
between 2005 – 2006.
As the market overheated during the fourth quarter of
2004 the sense of realisation settled in as early as the
first quarter 2005 and the pace subsided more and more
until early 2006, with the end result that the market
became a buyers market.
Beginning 2006 all those elements that were overlooked
became prominent concerns for the investors and the end
users, with serious questions being raised concerning
completion dates, quality, and property developers’
commitments.
Click on the image to view some of the
upcomming projects
