Outlook for Dubai property sale and Rental in Dubai in 2010

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The good news for those people who want to rent apartment Dubai and other accommodation is that prices for rental in Dubai are not likely to rise immediately as Dubai property sale regulate to change in rates of labor movement and there is a possibility that more will come into Dubai market.

2009 brought too many changes in Dubai property sale market. There isn't any doubt in saying that boom seen in the last six years or so has come to an end, and market for sale as well as for rental in Dubai is in a downward spiral. Most if not all the investors are questioning when it will bottom out, and it is speculated that some of the least price levels will be seen in the first half of year 2010. Many experts and gurus are relating Dubai with the great financial crisis of American economy and the other parts of the world. According to them the recovery in USA economy will be followed by the reestablishment in UAE.

Although the situation in America does not seem to be directly related with the consequences in UAE, still psychological connection is there. A recovery in one part of the world is likely to encourage the investor of another. Unless there are very local countries centric grounds behind the supply and demand mechanism like corporate disgraces and default in debt payback.

The mishandling of world debt repayment issue is one of the major reasons that have dampened the sentiments of the buyers and investors. Some great efforts are required to retain the confidence in the market. Although too much has been happened till now, states initial support, then insistent refusal to bail out Dubai world sent mixed and puzzling signs around the global investments entities. Most of the investors are in doubts that if the government in Dubai itself going bankrupt. Not anything could be further from the facts as both Dubai world entities and government can easily release the burden of their own liabilities. The impression of instability remains and despite of the government of Abu Dhabi has inclined in to provide the loan of US $ 10 billion to come out of their liabilities, still there are no sings of recovery.

Still Dubai apartment for sale and market for rental in Dubai especially marine residences near retail shops and restaurants with ready way in to the city are imposing better rents and prices as compared to other areas of rent apartment Dubai. The tenancy rate here concerning rent apartments in Dubai was also very attractive. For the moment the Dubai property for sale prices especially for apartments have suffered a greater fall than rates of rental in Dubai. It is speculated that prices will start to become stable when these entire projects come to completion phase.

It is also seen that villa prices in Dubai goes down by an average of 45 % over the last year. With Dubai property market changing from a seller's to a buyer's delight, tenants are currently in a better condition to re-negotiate contracts for rental in Dubai. Property owners have recognized that they have to persuade tenants with competitive rates of rents, or offer choice in payment options and other benefits to keep hold of them.

 

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