According to Hilmar Oschmann, head of Development and Finance for Kleindienst & Partner, fears that Dubai property for sale boom is about to go bust are unfounded.
He says Dubai remains a major hub for investors from India, Pakistan, Iran and Russia and they aren’t escaping from the emirate anytime soon.
"There’s one area in this market that most foreigners overlook and that’s the importance of a residence visa when you get a finished property.
"There are so many [people] from India, Iran, Pakistan and less stable countries than Dubai who love a place to retreat and keep their heads low when it comes to political issues. They’re the kind who put their money overseas and go offshore," he said.
Oschmann says it’s the Europeans who remain sceptical. "Europeans, as well as Americans don’t believe there is a third world. People fully overlook this area and link it only to the entire Middle East and terrorist attacks."
Internationally, Dubai marketing has successfully attracted a variety of international investors, says real estate expert Sunil Jaiswal. "I was in a small town of 3,000 people in Colombia and they had PowerPoint presentations on Dubai Marina," he says. "That’s the reach of Dubai."
Despite this, Jaiswal says he is guarded on his predictions about Dubai. "It all depends from what angle you look at property. From an equity growth angle, I have to be cautious because you are seeing property that investors bought years ago and is now available.
"You have to be careful where you are buying because anything can make the market turn," he says.
He advises potential buyers to find out how many investors are buying into the same development, particularly if it’s off-plan. "If you have 100 apartments in a building and 50 per cent are bought by investors, when those apartments are ready there will be 50 to rent or 50 apartments to sell.
"And if you have the same competition in prices, some will be more desperate to sell, while others will wait it out and buyers and renters will have the choice in what they want."
But whether or not Dubai is slowly moving into an end-user market is still up for debate. "Most end-users who buy want to avoid the rent," says Sabid Hyder, a sales and marketing manager for AAM Real Estate.
Having been in the business for almost a decade, he says most of his clients come from India, Pakistan and Iran and are usually investors.
As for Europeans, the British are the major buyers whose properties serve as second homes. Hyder says the majority of end-users stick to Emaar, Damac and Tamweel properties. The Palm and parts of the Marina are also selling well.
"There’s no competition. No one is doing things like Dubai. For the next five to six years, nothing will happen. But after that, there will be many projects, but the rental market will remain good," he predicts.
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