Many questions are being raised by analysts with respect to the present housing boom. However, the same fears were also raised in earlier times. All that has subsided now because of the continuing inflow of investments from all over the globe into the UAE. The questions raised were whether the massive housing and other infrastructure developments are reaching the entire society. Due to the significant increase in household incomes due to the favorable business climate, everybody have a chance to make money from any form of business and not just from the real estate industry alone.
The key determinants that have led to the popularity of various building construction technologies, the pattern of real estate developments and the presence of migrant labor in large numbers are holding the construction industry in thrall in the UAE. State intervention is at the barest minimum in real estate. However, interestingly the state has come to the rescue of this booming sector when there was a threat of a recession.
The real estate sector had high expectations when they had invested significant sums of money into it. However, during the recent recession, the government stepped in to bail out the real estate sector to prevent it from falling into the same situation as that of the US which heralded the global economic recession. However, the government stepped aside when the market went up. A home for sale
in the UAE will have many takers if it is located in an up market area and that too when the real estate market is booming.