Real Estate in Dubai and Its Promising Future

For well over a decade, Dubai has been a city fit for the elite. For the rich and royal of the Arab world, it was the ultimate playground. Dubai real estate too, over the course of years has lived up to the city’s reputation of being one of the most expensive cities to live in.
After the decade’s worst economic meltdown that came in 2008, the realty market of the city suffered badly. During the recent few months however it seems as though the luxury real estate of the city has been brought back to life. During the past few decades, the very name of Dubai became synonyms to luxury.
Despite the impending recession, Dubai’s luxury developments have surprised many by retaining their stature of being some of the most sought after properties in the city. According to many luxury developers actively busy in various high profiled projects, the response this high end real estate in Dubai have been receiving from the investors is healthy to say the least.
The various quarterly reported churned out by several researchers during the past few months have shown a clear spike in the value of most of the luxurious properties. Although the high end property of Dubai has performed well throughout 2011, an explicit rise was noticed during the last quarter of the year.
The Dubai apartments for rent in the fourth quarter of 2011 saw a massive increase of 4%. Even though, as per many experts, the reason behind such sharp rise in the rental value of villas in high end areas is their limited new supply.
According to the quarterly report released by Jones Lang LaSalle, several of the luxury properties in Dubai are performing better than they did the year before. Some of the other high-end properties which showed a healthy increase in both demand and price were Arabian Ranches, Meadows, Springs and Palm Jumeirah.
With more new office buildings being completed, vacancy rates continue to rise, forcing a decline in rent in certain parts of the city. Tenant demand is generally being driven by the increased affordability of rent and the opportunity to move into new office apartments for rent in Dubai from older buildings.
A majority of the supply of office space in the market place exists in areas such as JLT, Tecom C and Business Bay. These areas offer a large choice and are better suited to smaller businesses. There is increased vacancy in the complexes (towers) surrounding the DIFC as several large businesses are relocating their offices back to DIFC due to availability of space.
Within some of the older, established districts such as Deira and Bur Dubai, vacancies appear to be increasing as larger businesses choose to relocate to CBD due to better affordability and the advantages of new and improved buildings. Lease terms offered by landlords are generally becoming more flexible and attractive to tenants with the offer of large rent-free periods and longer leases.