Is this the best time to buy a house (or two) in Dubai?
It's no state secret that Dubai property prices are witnessing a downturn.
Warren Buffett, the Oracle of Omaha, once famously remarked: "Be fearful when others are greedy and greedy when others are fearful." The CEO of Berkshire Hathaway has made his fortune through contrarian investment tactics - by moving against the market trends. And he's got some 84-odd billion dollars in net worth to show as proof that his strategy works like a charm. In that light, a friend of mine who was until recently contemplating offloading his property in Dubai, is now actually thinking of investing in another - perhaps two, as he put it.
It's no state secret that Dubai property prices are witnessing a downturn. Prices are depressed and developers are exploring myriad ways to incentivise end-users to move into their own houses instead of coughing up steep rentals. Plus, as the experts never tire of telling us, there is looming oversupply in the property market and tens of thousands of apartments and villas are going to be delivered this year and next and the year after. Is this really, then, the best time to buy a house (or two) in Dubai?
If you believe in Buffett's modus operandi (his popularity can be gauged from the fact that Bitcoin multi-millionaire Justin Sun recently won a $4.6-million annual bid for a lunch date with the investment guru), then you'd see the logic in my investor friend's reasoning. The fact remains that the available land in Dubai (or anywhere on this earth) isn't growing - the population is. As is the population's affluence.
Which means that, as we move into the third decade of this century, more, wealthier people will be competing to own a slice of this desert oasis.
Then there's Dubai Expo 2020 right around the corner, which is only going to further up the allure of this land. Real estate remains a cyclical business, as has been proven time and again in most mature markets. That cycle may have just turned again in Dubai, with Emaar's sale of residential property launches in Dubai witnessing a 50 per cent year-on-year growth in the first half of 2019. There clearly is a substantial number of 'greedy' Buffett followers in Dubai who're set to make the most of these depressed prices when the market bounces back.