Is the Dubai property market in decline? There are very mixed messages coming from the sector with analysts saying that at best it’s due a negative correction but at worst it could crash. And with a relative lack of major oil revenue to back up Dubai’s government, which partially owns many a developer and many a bank from which developers have sought loans, this could undermine Dubai deeply.
On the other hand, the government, developers and even municipal bodies are talking up the market, saying that there is still a lack of completed real estate available on the market, and that as a result rental rates are rising all the time creating a potentially very profitable haven for investors.
So what of the celebrity names propping up Dubai’s property market? Are they simply par for the course in this, the most glitzy and glamorous real estate market in the world, or are they in fact being shipped in to distract our attention for the lack of viability in the concept of ‘investing in property in Dubai for serious profit?’
I suppose the answer lies somewhere in between determining whether or not you’re a cynic! We at Degtev are divided. We’re well aware that Dubai has a love of all things celebrity – after all, the tale of the famous musician who attempted to enter Dubai with Class A drugs (allegedly) in his possession and who was subsequently pardoned in a state where such an offence could lead to the harshest of penalties, is of course legendary. Therefore, Dubai has always been keen on shipping in the celeb names to endorse a development or a product, but suddenly it seems that Dubai has upped the celeb ante and is coming out all guns blazing in terms of bringing on board the big named boys and girls.
We have Kylie fronting the launch of a new hotel at what is being billed as the most expensive party ever, Tiger Woods adding his signature to a massive and significant golf course in Dubailand, and Jamie Oliver to apparently design kitchens, gardens and restaurants at the Jumeirah Golf Estates development. These celebs are following in the footsteps of David and Victoria Beckham, Ernie Els, Michael Schumacher, Boris Becker, Niki Lauda, Brad Pitt, Georgio Armani, Hilary Swank, Donald Trump, Greg Norman and Pamela Anderson to name but a few.
All have apparently been involved with projects in Dubai in the past, but now that the fortunes of Dubai’s legendary market are waning ever so slightly, one could surely be forgiven for thinking that actually, the latest batch of celebrities to be brought in are just there to take our eyes and minds of the cold hard facts. I.e., that actually, with seemingly more sellers than buyers and some developers holding back progressing property projects for fear of a dearth of investor, Dubai’s real estate landscape is just not what it once was.