Although the return of affordable home finance is likely to kickstart the revival of Dubai's real estate sector, this is only one of many factors affecting the emirate's property market, says Mohanad Alwadiya, managing director of Harbor Real Estate.
"The recovery process is far more complex than just taking the first step," he says. "To view the revival of real estate in isolation from the overall economic recovery of Dubai, UAE and the rest of the world, would be incorrect. On the macro-economic level, a recovery in the world economy is fundamental to any recovery in the real estate sector, as virtually all of Dubai's industries are exposed and vulnerable to world economic events. The real estate industry is no different."
Mohanad, however, notes that the problems facing the emirate are not unique. "In virtually every economy in the world, credit has tightened, consumption is down, governments are scrambling to shore up the financial sector and people are losing their jobs due to companies restructuring."
Based on the number of transactions, property sales have dropped from around 60% to 75%, says Mohanad, while stressing that demand varies according to property type.
"While the government has taken multiple and significant steps to minimise the symptoms of the recession, its actions can only soften the impact. Make no mistake, Dubai is well placed to weather the storm, but no economy can escape its effects," he says.
As many economies start to rebound, so too will Dubai's, he predicts. "Just as Dubai's growth was negatively impacted by the global downturn, so too will it benefit from the global recovery, particularly as world trade, tourism and economic development accelerates."
The Address, Downtown Burj Dubai
Furnished one-bedroom apartment at Dh5 million.
Mohanad's hotspots:
Emirates Hills
A 19,686ft² freehold plot at Dh5.7 million or Dh290/ft².
Green Lakes Towers, Jumeriah Lakes Towers
Furnished two-bedroom apartment at Dh1.6million.
Jumeirah Beach Residence
Three-bedroom apartment with maid's room at Dh1.7million.
