(1888PressRelease)
January 08, 2007 - Taher Suterwalla’s updated views of the construction boom and Dubai property investments.
What is Dubai to the individual eye?
Many including Taher Suterwalla himself believes with The Palm coming closer to completion, the 8th wonder of the world, the world's largest man-made island, which can be viewed from the moon. The jewel in Dubai's property crown awaits us…..
The boom is definitely not over, and having been skeptical himself, Taher Suterwalla believes that there’s still a strong play in Dubai property market.
Taher Suterwalla states it is almost accepted that the Dubai property market will undergo a definite correction, with debate mainly over the timing and extent of a downturn. Therefore, Suterwalla believes it is realistic to begin looking at which parts of the market are most likely to be affected and which are most protected from a slowdown. The previous talk of commercial property, where Suterwalla had foreseen a huge influx of funds seems more evident than ever.
However Suterwalla comments more and more developers are working with lenders for attractive payment plans and financing allowing them to be even better investments that you do not have to put much money up front as an initial payment.
Rental yields still remain strong, supply and demand still plays a big part in the market and with a growth in population , landlords are in favourable control, Taher Suterwalla states.
However this may only be a short to medium luxury, with the proposed JBR towers due to complete and the palm Jumeriah expected to handover soon there should be a continued increase in supply of property to control extortionate rental hikes.
Taher Suterwalla comments that due to delays in delivering property on The Palm, Jumeirah underline an important fact about the Dubai property market. Delays are mounting, and each delay puts more pressure on local supply, increasing property prices and rentals.
Businessman Taher Suterwalla has pointed out in the past that a real estate crash is likely to follow the recent crash in UAE share prices. This cannot be ignored but crashes in real estate and equities are dissimilar in emerging markets.
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