Buying real estate in Dubai is much more beneficial than earlier times. Real estate prices have tumbled in Dubai in this economic recession time. It has fallen more than 50% recently from last year’s price. As a result of credit crunch, real estate market has hit by a property slump. Many factors like job-security worries, concerns over the availability of financing and lacks of visibility on project delays contributed to the decline of real estate market in Dubai. As the foreign investors snapped up the real estate deals due to the uncertainty in the market and the economic slowdown, the real estate market showed its weakness as in the other regions of the globe.
The mortgage market in Dubai has also been affected by the down trend in real estate market. Some valuable reviews (Colliers) showed that the gross average property price has declined to 949 U.A.E. dirhams ($258) per square foot in the second quarter of 2009. It can be compared with 1037 dirhams in the first quarter 2009. Interestingly it can be seen that at present real estate prices are at the same rate as they were in 2007 second quarter. Real estate agents are a worried lot. They now say about the dearth of buyers and softening prices. The investment community has withdrawn from the market. In the second quarter of 2009, the townhome and villas prices have gone down by 11% and 18% respectively. One exception is in apartments, the reduction in price is only 3%. Many investors intended for buying real estate in Dubai are waiting for the stabilization in the market. But one fact to be considered is that now it is a buyers’ market. If you do not want short covering, you can get best real estate deals in Dubai at a cheaper rate.