In an attempt to halt a sudden increase in real estate prices, Dubai constructed stricter property laws and regulations. This move has now led to a struggling period for the emirate’s real industry.
Surprisingly, as a nation, Dubai is hardly reliant on oil, despite fossil fuels generating a substantial amount of the UAE’s incomes. Nicolas Maclean, managing director of consultants at CBRE Middle East, insists that the dropping prices of oil and the lull in the real estate industry are not linked. Instead, he blames the lull on the growing prices of housing in the year 2013.
The real estate crash of 2008, due to a worldwide financial crisis and Dubai’s debt issues, saw an approximately 50% drop in prices. On the other hand, housing prices in 2013 increased by 51% as predicted by Cluttons. However, there was only a slight growth of 3.4% in 2014.
Presently, the market is constructing agendas to return to more suitable and reasonable housing prices, as well as offer a stable demand and supply process for the properties. Now, with this initiative of making adjustments and offering reasonable prices to meet the public’s demands, Dubai hopes for a profitable future for its real estate industry.