Ask the experts

In your opinion, has the recent credit crisis increased or decreased demand for property in Dubai? Is buying to let still a good option?

The global financial crisis has affected markets across the world and Dubai is no exception. However, as the country's leaders have pointed out, the impact has been less pronounced compared to other economies.

This has recently influenced the property sector and demand has softened, with fewer speculators at play and tightening on lending by the financial institutions. We view this as a "healthy correction" as the market moves towards an end-user focus.

Buy-to-let is a good option when the demand for rentals is high. On the positive side, short-term rentals could gain ground with the current tourism season, especially for serviced apartments.

Compared to Dubai's other residential developments, how do new areas like Jumeirah Lake Towers measure up?
As the only other high-rise development alongside Dubai Marina and Jumeirah Beach Residences, Jumeirah Lake Towers has good price competitiveness but there is still some time until the planned infrastructure is completed and made available for its residents.

A lot of media reports mentioned the decline of prices in Palm Jumeriah. If this is true, is now a good time to buy if you've got the capital?

There has been a healthy correction in prices, especially in the very-high premium Signature Villas within Palm Jumeirah. These prices represent good value for end-users who are not looking at fast returns, rather those who want to live in a high-end location.

What's the best way of gauging whether you're dealing with a 'switched on' real estate agent?
A 'switched on' agent is proactive and drives the activity on the property. They ensure potential purchasers have access to the best priced properties, taking into consideration the requirements of investors and their reasons for buying, in order to best match the needs of clients with the right deal.

Are off-plan projects in Abu Dhabi likely to give you the same returns as a buy-to-rent option? Do you think they're a good buy in terms of appreciation?

The Abu Dhabi property market is still in its infancy and strong returns on buy-to-rent is still a matter of speculation, as many projects are not due for completion until 2009 onwards.

It, therefore, is a little early to compare buy-to-rent and off-plan investment returns. However, for those few projects
very close to completion, purchasing now even for rental purposes, looks attractive in terms of yield particularly when the forecasted lack of supply in the next 12 months is factored in.