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Essay / Price Differences in Dubai Real Estate - 1289
For Tikku Brokers, IntroductionDubai real estate is a very broad topic and it is indeed a very big market. This essay will explain the concept of market forces and show how it can be displayed in the Dubai market, thereby providing an answer to the research question: “To what extent do market forces determine the price of rented housing in Dubai ? We can identify large price differences between two similar homes, while keeping the square footage and housing type relatively constant. Yet the key factor driving these price discrepancies is the concept of supply and demand, for reasons such as location. This report will analyze 3 specific cases, including studios, 2 to 3 bedroom apartments and 3 to 4 bedroom villas, and generalize the factors causing these price differences. After recording this data, this report will conclude to what extent demand and supply come into play, thus answering the research question in an analytical procedure. This report will analyze properties in various areas of Dubai and directly follow the valuation task. The rental market, anywhere in the world, is a unique business. To some extent, supply and demand have an important role to play in determining prices, just like any product in the world. If there is an oversupply of housing in a given area, rent prices will fall indefinitely. However, there are certain limits to the law of supply and demand in the rental market. Unlike manufactured goods where you can allocate your resources differently, you cannot move the excess number of houses out of that area to keep prices stable. This is one of the unique characteristics of supply and demand in the rental market. On the other hand if there is......middle of paper......ess. Np, and Web. November 9, 2013. .Kumar, Anjana. “Rise and fall: ten years of freehold.” Editorial. Gulf News. Al Nisr Publishing LLC 2013, May 10, 2012. Web. November 17, 2013. .Moving houses. Digital image. Np, and Web. November 12, 2013. Raheja, Ravi. “Demand and Supply Affecting Real Estate.” Personal interview. November 15, 2013. “Residential properties for rent in UAE (up to studio). » Property search. Np, and Web. November 12, 2013. .Wam. “Salaries of UAE federal staff increased by 100%.” Emirates 24/7. Np, and Web. November 18. 2013. .