This is a very popular misconception and judging by the sheer amount of interest that we have been generating as of late I think it is more than safe to answer this question with a resounding NO.
Yes, there has been a lot of building, but demand is huge. The main driving factor behind this is the fact that Dubai represents one of the fastest growing populations in the world. The current population of 1.3 million is predicted to rise to 4.5 million by 2010. This predicted growth means that approximately 50,000 new residential units are required annually to meet demand.
Combined with the anticipated doubling of the population in the next 4 years; relocation of global company headquarters; increased tourism, and a general booming market – is all adding to Dubai’s attraction.
The Dubai Government is working hard to prevent a shortage of supply and is giving land to developers as an incentive. What looks like massive supply today in Dubai may be nothing compared with demand in a few years time. Dubai is after all growing its GDP by 7-8% a year and shows no sign of slowing down.
Properties are appreciating steadily at the rate of 15% – 20% per annum, (for some developments even greater). It is estimated that by 2009, based on current growth, your initial financial investment is expected to at least double. Add to that, the fact that any long-term resident will pay out a fortune in rent.
This demand is not about to let up.
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