Stock market slowdowns and rents boost in Abu Dhabi

The stock market of Abu Dhabi is facing a continuous slowdown , hardly a boom indicator for local real estate investors one perhaps thinks, but still that is not the case. Stock market slowdowns can actually be good for real estate investment.
If we Take the 2006 UAE stock market crash and Dubai property boom as an example we find the above mentioned statement really true. When local stocks came down many believed the end of the Dubai real estate boom was on the cards. But what happened was just the opposite. Investor pulled money out of stocks and bought property, and even those who may have put their money into stocks decided to buy real estate. As a result Dubai property prices have more than doubled since the 2006 stock market crash.
Will we see the same happen in Abu Dhabi? To me it seem very much possible.
Dubai Case Study
One really needs to look at the 2006 occurrence in Dubai for an answer to that question. Besides the supply and demand position in Abu Dhabi for completed property, which underpins the off-plan market, is extremely strong.

Last week's report from a renowned property consultant showed that rents continued to surge in the UAE capital in the third quarter with increases of up to 36%. The average cost of renting a home in Abu Dhabi is now on a par with central areas of London and New York.The report said that Gulf region offers strong relative international value with 8%-8.5% yields for prime commercial property. On an annualized basis, Abu Dhabi residential rentals jumped an amazing 87%
Residential property investors in the UAE capital have also enjoyed a near doubling-up of capital values. The problem of course is that off-plan buyers will have to wait for their properties to be delivered to benefit from the high rents, either as landlords or end-users saving on their annual housing costs.
The present situation in UAE stocks is not far removed from this phenomenon. But where do investors put their money locally if they abandon stocks? Abu Dhabi real estate will likely be a major beneficiary.

Rapid Growth in Dubai Real Estate Sector

Dubai is famous for the real estate developments happening here and also for the most ground-breaking technologies and concepts applied for its developments. Investment in Dubai's property is believed to be safer and most profitable way to double your money.

Rationale behind the growth in Dubai property sector is the changes in laws and provision of flexibility for foreign investors provided by Dubai government, which allows foreigners to buy, rent and sell Dubai properties. Many real estate development organizations are offering habitation visa for those who buy properties from them. Several multinational organizations are now establishing their office Space in Dubai, which made Dubai an excellent work market for professionals and skilled workers around the world. More professionals are attracted towards Dubai because of its attractive high salary. This phenomenon has created huge demand for accommodation and office spaces. Laws in Dubai related to real estate are very understandable and formalities are minimum as compared to other countries.

Dubai has emerged as shopper’s heaven due to its open port policy with low import duties and superb logistic facility. Dubai has a world class facility for conferences and exhibitions; it hosts many international conferences and exhibitions. The Dubai Real estate in Dubai is experiencing immense activity in the form of investments from public and private organizations which include world's, largest amusement park, tallest building and largest man made islands etc.
Dubai real estate sector is expanding day-by-day to the ground breaking levels by introducing more modern and ground breaking projects

Rapid Growth in Dubai Real Estate Sector

Dubai is famous for the real estate developments happening here and also for the most ground-breaking technologies and concepts applied for its developments. Investment in Dubai's property is believed to be safer and most profitable way to double your money.

Rationale behind the growth in Dubai property sector is the changes in laws and provision of flexibility for foreign investors provided by Dubai government, which allows foreigners to buy, rent and sell properties in dubai. Many real estate development organizations are offering habitation visa for those who buy properties from them. Several multinational organizations are now establishing their offices in Dubai, which made Dubai an excellent work market for professionals and skilled workers around the world. More professionals are attracted towards Dubai because of its attractive high salary. This phenomenon has created huge demand for accommodation and office spaces. Laws in Dubai related to real estate are very understandable and formalities are minimum as compared to other countries.

Dubai has emerged as shopper’s heaven due to its open port policy with low import duties and superb logistic facility. Dubai has a world class facility for conferences and exhibitions; it hosts many international conferences and exhibitions. The Real estate sector in Dubai is experiencing immense activity in the form of investments from public and private organizations which include world's, largest amusement park, tallest building and largest man made islands etc.
Dubai's real estate sector is expanding day-by-day to the ground breaking levels by introducing more modern and ground breaking projects

Specific Steps to Buying Property in the Dubai

Since the 1940s, most foreign nationals who had an inclination to buy property abroad have shied away from buying such property in any of the countries in the Arab world. There are two primary reasons why so many foreign nationals historically have avoided buying real estate in UAE and Arab countries.

First of all, as news reports have recounted over the course of the past sixty years, the Arab world is far from being the most stable region in the country. Wars and violence have been common occurrences within that corner of the world.

The second reason why so many foreign nationals have avoided buying and owning real estate in the Arab world rests in the fact that the laws governing the ownership of real estate in many of these countries has been complicated and structured in such a way that it overtly discouraged foreign investment in real estate. Indeed, many countries that make up the Arab world have prohibited foreign ownership of real estate during much of the past fifty to sixty years -- including to the present day.

Things To Avoid When Buying Real Estate

When investing in real estate when buying Dubai properties there are some things you should avoid. One thing you should avoid when buying real estate is property that the taxes are not up to date. The reason for this is if the taxes are not paid the government can take a way the property. The last thing you want is to invest some time and money and end up not being able to buy or even worst lose a property. It is recommended that you get the information about the taxes before you buy a properties in Dubai.

Another thing you should avoid when buying real estate is properties that have over due bills like water and sewage. The reason for this is if the water and sewage are not paid the government can take away the property. If you do buy property that the bills or the taxes need to be paid, it is important that you do have the money to pay them off.

One last thing you should avoid when buying real estate is properties that are overpriced. If a property is over priced and the housing market goes down, if you do sell the property you can end up losing money. It is recommended that you buy property at or below market value. If you do buy property at or below market value you will make more money if you sell it. Buying real estate can be very profitable if done right. If you use the information you read here you will know what things to look out for.

A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. You can also Add This Article to your web site or blog. Thank you and enjoy.

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