The Wheeling and Dealing Continues Along Dubai’s Marina Front

by DanielMcCain On February 8, 2010 | Investing | Hits: 1

For all of the hubbub that the Dubai World debt repayment fiasco has created, it would seem that selling and purchasing property along Dubai's marina front is strangely unaffected by this event. If the truth be told, construction and dealing in Dubai marina properties has continued silently even through the worst days of Dubai's present debacle. While the quantum of deals has been few, it is the size of each deal that has made the impact. For many, properties along Dubai's marina front are some of the most prized in the emirate. It's very proximity to the city while giving one panoramic views of unparalleled beauty along the marina front makes it among the most sought after properties by the locals, foreigners and celebrity elites. Thanks to superior marketing efforts, Dubai marina properties now command rents and prices that are enviable by world standards.

Up to the middle of November 2009, it was seen that many Dubai marina apartments were still selling at prices higher than the original purchase amount quoted. At that time, most property owners looked to be in a hurry to sell off their properties, as it was rumored in knowledgeable circles locally that a possible default could occur on the part of Dubai World in regard to its large debt repayments.

Now it appears that the market has dropped, if only for the short term. Analysts say that the current downturn is a reflection of the market correcting itself, and this is a good thing because the prices are getting more realistic every passing week.

On the other hand, this does not bring good tidings for those in the financial industry such as the mortgage lenders. For them the present situation is dicey, as it serves to halt the promotion and sale of new mortgages if activity is slowed down and returns have minimized. In the long run it is a truism that this state of affairs if not corrected could prove disastrous for the housing and financial sectors. If anything, analysts recommend that at this time, investors and buyers should become active in the property market to pick up properties at affordable rates so that they can reap huge profits when the market rebounds. If only there were more positive signs of a recovery in the property market, financial institutions such as banks and mortgage companies would be willing to channelize more funds into the housing sector so that end-users could purchase available properties.

Quite clearly the market is divided on the future of the property sector, others opining that this scenario does not really reflect a slide in property values. They are confident that it is a temporary condition, which is likely to be resolved as soon as the Dubai World debt repayment issue is settled once and for all.

All in all, the Dubai Marina front seems to be least hit by the financial worries of Dubai world or the emirate. Dubai Marina property dealers look unfettered as they quote their prices and business carries on as usual. Dubai Marina Apartments look to command the attention of buyers and sellers for some time to come.

About Author
Daniel McCain is an expert real estate consultant associated with Halcon Real Estate, a Dubai-based international real estate firm that specializes in Dubai Real Estate of all types, whether residential, commercial or retail properties. He has vast experience of working in the Dubai Property market.