Is Dubai unaffected?
by: Danny Smith
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Word Count: 459
The “credit crunch” is a popular phrase these days. In the United States, the sub-prime mortgage lending mess is greatly affecting home buyers and sellers. What many may not realize is that these poisonous symptoms of the so called “meltdown” have spread like a virus to other countries as well, and one of these countries is Dubai, the most populous city of the United Arab Emirates (UAE).
We’ll review the Dubai investment property market, more information on how it’s been affected, and how the Dubai currency and other Dubai information suggests that this county is well positioned to weather the credit crisis. First, let’s look at the current Dubai investment property market. Dubai investment property has been, and continues to be, a very hot market for investors.
In an article on http://www.aboutdubai.org, “investors expect almost a 30% or more return on any property.” This is how the United States used to be 10 years ago. Despite the influences of the “credit crunch,” the Dubai investment property market is still growing and investors are still enjoying a healthy profit in their investment.
Next, let’s explore areas that Dubai has been affected by the credit crisis. In an article on http://www.homesoverseas.co.uk, “the Dubai property market isn’t immune to credit crunch, fears grow that Dubai’s property boom is fast running out of steam, as a consequence of the global liquidity crisis.” However, critics question the validity of the last statement, and say Dubai’s real estate market is still strong. Now, that sounds familiar. Haven’t we heard that same phrase muttered about the U.S. economy by a presidential candidate in recent months?
Despite any fears, the United Arab Emirates are taking measures to prevent what’s happening in the U.S. from happening there. Similar to the recent economic bailout in the U.S., the United Arab Emirates central bank made the decision to set up an emergency lending fund of 50 Billion Dirhams (the Dubai currency) to strengthen the property market there. Despite signs of their housing market slowing, in an article on The Economic Times (http://economictimes.indiatimes.com), “Gulf Arab states are among the best positioned in the world to withstand the effects of the credit crisis.” While it’s certain that financing especially in the housing market there has become more difficult and expensive, but Dubai has mostly dodged exposure the toxic mortgage assets that the U.S. has been plagued with.
In conclusion, hopefully this gives you a fair assessment of effects of the current credit crunch on Dubai property and investment markets. Dubai information and statistics showing that it’s still a good place to invest in real estate verifies that you can still make money there, and that should be a relief for local investors.
About the Author
The author of this article recommends AMEinfo. They have a wide range of resources available to suit all needs and requirements in relation to Dubai information, including in-depth knowledge on the property market.
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