insights into the dubai property market

Wednesday, September 21, 2005

who's gonna buy all these houses?

If we were to consider that only households in Dubai with a combined annual income greater than AED 420,000 (US$115,000) could actually afford a freehold property, then the potential home buyer market shrinks to roughly 11,100 total households between 2004 and 2010, or approximately 1,600 new households purchasing residential property per year, according to analysis and the most recent Income and Expenditure Survey conducted by the Dubai Municipality in 1998. If we assume an additional one per cent of all households within the UAE that are living outside the emirate of Dubai as potential secondary home buyers or investors in Dubai, this increases the overall potential UAE market to roughly 13,900 households between 2004 and 2010, or approximately 2,000 new households purchasing residential property per year, according to analysis and the last national census carried out by the UAE Ministry of Planning.With over 15,000 freehold residential units anticipated to come on-line within the next three years, which would satisfy UAE homebuyer demand through 2012, why do developers continue building?

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