Real Estate markets are basically defined by the traded property types, in terms of commercial, industrial, agricultural or residential market segment. Each of these property types may comprise several sub-types, for example, the commercial category may include office and retail properties, while the residential category includes single family residences, apartments, condominiums and other sub-types. Basically it rotates in sequence and the real estate market in Dubai is of no difference.
The government was the sole provider of the real estate development at first in Dubai but after time it passed the role to the private sector. At the moment the private sector is carrying out large real estate projects.Parts of these projects have been completed and the balance is expected to be handed over in the near to midterm. Domestic trade was the main driver of Dubai GDP growth till 2016. However, tourism, real estate and manufacturing are predicted to lead economic activity in the future. According to Dubai economy the real estate sector within the Emirates is projected to go by 4.3% and 3.8%in 2017 and 2018. U. A. E legislatives such as Abu Dhabi law no.
3 of 2015 and Dubai law no. 8 of 2008 requires developers to maintain an escrow account which encourages institutions to find new development and provide protection to mortgage of off plan purchases. Due to slow moving oil prices the demand of housing is reduced within the country which slowed down the real estate revenue. The apartment rental rates are expected to continue downwards as various new projects have been completed and delivered.Several large bank seems reluctant to lend which also impacted the ability of buyers to invest in the market. So, to cover up these fallacies, policy measures that promote competition in real estate market such as opening up and liberalization of real estate market, information disclosure, flexible land and regulations and more liberalization of labor and capital markets are to be taken which will increase the speed of adjustment in the state market of Dubai following which the prices would attain a fair level.
