Dubais is a property market of two halves'as it is still a relatively young market in terms of its accessibility for foreign buyers it still has an active off plan residential real estate marketplace, and now it also has a resale and rental market too. This article examines the prospects for both in 2007?

Dubai's Off Plan Real Estate Prospects in 2007

When it first became possible for foreigner buyers to own freehold real estate in certain areas of Dubai there was an immediate frenzy of interest as properties were selling for relatively low prices in a location where there was already intense demand from expatriate workers for housing.

Both investors and expats living locally in Dubai went head to head for real estate and the off plan property investment cycle was born.

Investors have been making excellent profits from buying properties off plan in Dubai and paying just a deposit for them before flipping the incomplete units back onto a market where demand has been hungry for such property stock. Those who have bought in particularly well located and attractive high rises have often profited most by buying at the point of project conception and then holding stock until all other units had been sold out'by waiting until demand for properties was outstripping the supply and then re-floating off plan stock on to the waiting market, investors have taken good profits in a relatively short space of time.

However, for such a market for profitability to continue there has to be a driving demand from other investors to buy flipped on properties and evidence suggests that this will not continue to be the case throughout 2007. It's a fact that profits derived from taking such an investment approach have softened recently because prices have risen so high, and the thought that Dubai's property market can continue rising unabated and unchecked forever is naïve at best and dangerous at worst.

Investors who take this flipping approach never actually intend paying for their properties, instead they rely on the fact there will be a waiting market hungry to buy resales off plan and all evidence is suggesting that this demand is waning and that the off plan market for investors could show signs of weakness in 2007.

Dubai's Resale and Rental Real Estate Prospects in 2007

All is not lost - Dubai's resale market and the future prospects for completed property stock are very good indeed for 2007 and beyond. Basically there is such intense and growing demand for real estate in Dubai with 5,000 new families moving to the emirate every month that supply cannot keep up with demand which pushes up rental rates charged and the underlying value of completed resale properties.

As each and every individual, couple or family arriving requires decent accommodation within easy reach and short commute of the main free trade zones and business areas, completed property stock across Dubai is intensely in demand meaning rental rates are already soaring and property prices are creeping higher. Dubai is also suffering from severe construction delays, a worsening shortage of construction workers and an excessive increase in the price of building materials which is holding back new projects and meaning that the predicted number of units to be completed in 2007 has been revised downwards. Clearly supply is not about to flow into the market any time soon and so the profitability of and desire for completed stock will rise.

Real estate investors looking for good performing property assets in Dubai need to buy completed stock in a good location that is not highly adversely affected by the commute issues plaguing Dubai at the moment - and then and only then can they be assured of strong returns in 2007 and beyond.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

5 Tips For Your Flips
One of the hottest trends in real estate over the last few years has been "flipping" houses. You see it everywhere, in books, articles and reality TV shows. Flipping is hot and why not? There are several ways to do it successfully and here is a list of the most common. The first way we will discuss ... more...

Succeed In Short Sales
Are you looking for discounted property? Then short sales are a great way to obtain a property below retail price. Everybody knows that the quickest way to succeed in real estate is to obtain properties at a discount for either holding or flipping. Short sales are an excellent way to accomplish ... more...

Pre-Foreclosure Savvy Investors Needed!
Help the home seller. Help the creditor. Be rewarded. Are you looking for discounted property? Then short sales are a great way to obtain a property below retail price. Everybody knows that the quickest way to succeed in real estate is to obtain properties at a discount for either holding or ... more...

Risks Faced By Real Estate Investors In A Buyers Market
From one end of the United States to the other real estate property values are falling. In some areas, like Arizona, Florida, Nevada, Michigan and California, they are in free fall. Foreclosures are at an all time high, flooding the market with homes for sale. Many of these homes are currently ... more...