While some experts are predicting a kick-start to recovery in 2012, others still believe the new supply being scheduled to add to Dubai real estate market will continue to keep the sector in pressure. According to a report, Dubai real estate already has 23000 units and further 16000 units are expected to add to the market during 2012. This supply would be more than the supply added to the market during 2011. The projects, which are in the final stages of completion, are soon to thrive on the Dubai real estate market with out any construction delays, which has led some experts to think critical times ahead.
Despite that, experts think the 4.5% economic growth expected in Dubai economy in 2012 would relax the profit margins of the companies. Increasing job creation in Dubai is expected to soak up the pressure of the supply being added to the market, since the job creation will increase the demand of properties in Dubai. According to the latest survey by Bayt.com, one of the famous job hunting sites in Dubai, and You Govt, almost half of the businesses operating in the UAE are planning to hire new staff during the next three months of the following year.
Almost 63% of the companies they surveyed showed their willingness to hire new employees by the words “definitely” or “probably” while 44% out of the remaining 50% claimed that they would surely hire but less than five people. The basic purpose behind hiring is to grow their businesses in the better times of the economy. This job creation is expected to raise the living standards of the people in Dubai by increasing their purchasing power. They would be able to secure a decent mortgage deal for them. This would push the demand of Dubai hotels, residential as well as commercial units in Dubai up which would eventually heal its real estate sector.