Given the Credit Crunch, Will People Buy in Dubai? By Charmaine Smith At Isnare.com Ezine Articles

While a majority of the financial markets the world over are facing a grim picture, one of the few places that has not been affected by this is Dubai. Development continues at an unprecedented pace and properties currently under construction will not be ready to be occupied till 2010. A large number of investors worldwide are looking at Dubai as a very viable option. The resale and rental markets too have seen no negative impact.

There were analysts who felt that Dubai’s aims were unrealistic and too high, but Dubai now is one of the safest and most lucrative places in the world to make real estate investments. One of the principal reasons for this is the burgeoning resale sector, which refuses to slow down. There is no dearth of confidence when it comes to investing in the Dubai real estate market. One should not forget that this is Dubai’s development’s early stage, and with what it has achieved so far combined with future plans, investors are assured of reaping good results.

A recent report said that prices of properties currently under construction would increase by 25% whilst the construction goes on, and by up to 55% upon completion. With returns like these, it is not surprising that interest factors remain high.

Dubai might no longer have large resources of oil, but the revenue that was generated when it did, was used for an enormous building program to make Dubai a leading financial and tourist centre. Construction is so commonplace that it would be hard to walk a block without witnessing some new structure being made or renovated.

Amongst the most talked about upcoming projects, the Island of Ireland is one. It consists of beach-facing homes, impressive villas and penthouse suites. Spread over an area of 225,000 square feet, it is home to cafes by the sea, a marina, restaurants, boutiques, a spa, and other facilities. It is a perfect mix of opulence and harmony, and has already seen many buyers.

Another favourite amongst investors is the Palm, situated at Jumeirah. The project has the appearance of a gigantic date palm and is completely man made, using close to a hundred million cubic meters of sand. Its boundaries stretch from Dubai’s mainland into the gulf. The Palm has also addressed Dubai’s shortage of beaches, doubling the existent coastline. A monorail is to ferry people across the island. David Beckham, Joe Cole and Michael Owen, all famous footballers from England, have already bought property here.

A slight slowdown can be possibly witnessed amidst the current credit crisis but that by no means takes anything away from investing in Dubai. Real estate prices have gone up ten times in the last six years. Dubai is facing a shortage of ‘ready to occupy’ properties, which is resulting in the demands of investors not being fulfilled. There are predictions that say prices will increase by up to 10% by this summer’s end. With no signs of slowing down, investing in properties for sale in Dubai, should be looked at one of the safest investment options as of now.

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