The first casualty of the global recession was the real estate market. Prices and sales all over the world experienced a precipitous decline. Of course, the damage was not doled out equally. Some countries like Italy reported only minor declines, while others like Spain were decimated. In this article we are going to take a look at attractive investments in real estate in the wake of the economic recession.
What should you look for? The first rule of any successful international investor is to locate a market that was still growing at the time of the crash. Markets that declined as a result of a global phenomenon rather than any inherent weaknesses (see Spain) are more likely to bounce back when the economic climate improves.
With that in mind, we are going to turn our attention to one of the fastest growing countries in the world. With a population of 1.6 million people, Dubai is one of the most modern Arab cities on earth. The Golden Mile is also home to one of the largest expatriate populations in the Middle East.
Why are foreigners moving to Dubai in huge numbers? That's easy. Employment is comparatively easy to obtain and real estate prices are reasonable. Speaking of real estate, the market in Dubai is still growing, even though prices are down by nearly twenty percent, due to the recession.
Remember, this is the ideal scenario we mentioned earlier — a growing market that has taken a hit through no fault of its own. Of particular interest to investors in these situations are heavily discounted properties. Often, this means purchasing a home that needs a little work.
The reason for this is simple: in a poor market, these homes are often heavily discounted by homeowners who are desperate to sell. Another reason is that most international investors know how to stretch a few thousand pounds.
