The Fall of Real Estate in Dubai

Three years ago, real estate business had been considered the most feasible business in Dubai – now no more. Compared to trading industry, real estate is a dead business nowadays.

When I first joined Real Estate company I had witnessed how good the business was. I could imagine those busy days when people are flocking to our office to pay and sign the tenancy contract without negotiating the price or even ask for the total floor area – with or without services, furnished or unfurnished, with or without balcony. Our construction engineers are always on their good times. Every turnover of the projects to our clients promises them monetary freedom. Likewise, every successful business deal means huge commission to deceitful and greedy agents.

Money was not a problem to my boss. Just a click of the mouse or a drop call to his favorite agents he could make millions of bucks. There were several times that single transaction brought him 4M dirhams mark-up. As a result monthly charitable contributions were maintained and advances to employees were approved without a bit of hesitation.

The scenario had completely changed. The recession, like the plague of the ancient times, enveloped the whole world and destroyed our economy. Most people would ask, “does Obama help our economy?” Everyone is doubtful. But what is certain is that until this very time recession have not subsided. Everyone is affected. Many companies shut down. Many workers are repatriated. Businesses are not usual.

Today, real estate business is moving in a snail pace. Many apartments and commercial complexes are empty. Tenants are terminating their contracts without giving valid reasons. Our units in Al Barsha and Mirdif have dropped their occupancy rate by 30% in the last two months. I am afraid this will generate more losses in the future.

For those who are in the field of real estate like me, whom the banks refuses to grant any types of loan amidst numbers of references, hopes and prayers are the only powerful tool to survive.