How often in life do you stare a gift horse in the mouth and later regret it? Sadly most of us have a few regrets when looking back at past investments. If only we had sold then, if only we had bought when prices were cheap. Dubai property is a good example. How many people who said it was a bad idea to invest three years ago would still say the same today? Not many, these are the same folk now waiting for a market crash in Dubai that may never happen.
The more intelligent people who missed out on the Dubai real estate boom have shifted their attention to Abu Dhabi, the capital of the UAE which is some 100 miles down the road from the brash commercial and leisure centre that is modern Dubai. For Abu Dhabi has embarked on a similar expansion of its real estate sector, albeit arguably at a slower pace. Supply shortages
Now some commentators are pointing a finger and saying that Abu Dhabi has moved too slowly, and will now take a long time before delivering its mega projects to investors. But in the world of property investment a little patience can pay big dividends. Most critically the very evident shortage of accommodation in Abu Dhabi is going to get much worse before it gets better. Being a capital city of a leading oil producer in an oil boom has put enormous pressure on the real estate sector.
Huge rent hikes will continue in Abu Dhabi even as a supply of new property begins to cool rental rises in Dubai. So where are the biggest real estate capital value increases likely to be felt, Abu Dhabi or Dubai? It makes sense that capital values will increase most where the supply of property is most under pressure, and that will be Abu Dhabi for many years ahead. New market
And let’s not forget that the Abu Dhabi real estate market is undergoing a fundamental change even bigger than in Dubai. For formerly property could not be sold by nationals, and now both nationals and expatriates can own property that can be traded as anywhere else in the world. In short, this is the start of a completely new property market in the city with the world’s highest per capita income. Presently property is selling at a large discount to comparable international cities, and it will be hard not to make a profit from such an opportunity.
Source: AME Info
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