“Some investors are quietly snapping up deals for up to 40% below market value, the credit crunch means that now is actually a VERY good time to buy“
With doom and gloom on every corner the general consensus seems to be to save your pennies and sit tight till it all blows over...
Now is the time to pick up property bargains. We are taking on properties way under market value, where buyers have been unable to meet their next payments, due to the economic downturn many are desperate to sell and willing to take a huge cut. While this is very sad it also creates a fantastic opportunity for those looking to get a foot in the door. If you have the money right now it really is possible to pick up some great deals. It’s definitely a buyers’ market.
As the current global credit crunch takes its toll on several of the world’s most resilient economies, we have identified Dubai and the UAE as one of the regions with a thriving real estate market and economy fuelled by soaring commodity prices, booming manufacturing & services industries powering-on while the rest of the world powers-down. An Emerging economy on the rise the United Arab Emirate’s (UAE), which has its currency (AED, Dirham) pegged to the dollar. Low interest rates and a housing shortage, has propelled the UAE’s real estate market sky high. With an overall growth of 7.4% in the UAE economy in 2007, non-oil sectors, like construction and real estate made a major impact, accounting for 65% of the Gross Domestic Product. That is aside from rising oil prices that was responsible for 35% of the UAE’s GDP last year.
The rental market is the single most important factor that makes Dubai stand out, with 100% occupancy rates a housing shortage and 70,000 new residents each month Dubai is growing on a massive scale. Residents spend an average of 76% of their income on rent so you can easily expect 20% rental yields on properties there. Regardless of what is going on in the rest of the world, property investors here can expect fantastic rental returns and in turn phenomenal capital growth. Plus due to the economic downturn elsewhere you can pick up a real bargain right now.
