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Friday, November 14, 2014

Developer Supply and Demand

Everything, from the sale of electronic equipment for the car and house, ruled by the old relationship of supply and demand.

As supply increases, it may tend to have a negative impact on demand because people will have more choice and, therefore, a better chance of negotiations.

According to Forbes, Dubai has recently been voted in the top ten cities with the most influential people in the world after cities such as London, New York, Paris and Hong Kong.

It is important, therefore, that we in the real estate industry strives to meet and exceed the highest standards in the world in collaboration with the Dubai Land Department.

Prior to this, Dubai is a city built from scratch and the whole world does not know what it is like to actually live here.

With Dubai progress has been made, it is at the forefront in the minds of many people as a desirable destination to be. But this does not come easy. It took years of restructuring, build and maintain the various sectors of the emirate, including real estate.

Apart from countless high-rise, resort hotel and shopping mall, Dubai had to ensure that it maintains a culture and identity while never fails to amaze the world with each new development.

With continued expectations for each time the property sector over past achievements, it can be very easy to keep the tower built bigger and better but forget to analyze whether it is the right time to bring new supply to the market.

If you oversupply the market with the unit at a time when demand is not so high, you run the risk of putting the unit into the market diluted with less chance of them getting sold.

Earlier this year, some developers have released updates to a very high rate, so that every week, a new building will come into the market.

One example of this is the main developer that promises to bring 52 new buildings into the market this year.

In the current market, this will be affecting the demand for both new and existing developments. We might see a big adjustment in prices and, hence, the unit will remain unsold.

Fortunately, developers have had to adapt to market conditions and adjusted to ensure that prices and inventories increased at a healthy pace.

The market is always open to developers with versatile qualitatively more complete view of society for their development plans.

Examples of this are Meraas' Coastal Development in Jumeirah Beach Residence (JBR) and Bandar-mate who holds the promise of new developments caliber.

The government is finalizing a plan to more environmentally friendly options such as solar panels on residential buildings, which can feed power back into the grid.

Demand is shifting to different types of property. Therefore, developers are moving ahead one step ahead of the market by releasing sustainable projects such as Diamond Sustainable Urban Development.

With Cityscape Global recently, general opinions Dubai property market looks promising.

New developments have been exhibited and, to some extent, will define the identity of Dubai and establish itself as a global hub and gateway to nowhere.

We believe that the demand for property in Dubai will grow at a steady rate, and at the same time, entertaining the world with an amazing diversity of urban planning and improve the quality of life.

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