There is a global shift happening that is left unnoticed. The greatest exodus is occurring right under our noses and nobody is realizing the implications this will have on global markets and the economy in the upcoming generations. The U.A.E is priding itself with being one of the highest annual population growth countries worldwide with a staggering growth of 3.83 per cent from 2008 and a projected growth of 6.3 per cent for 2009. What is happening globally and what are the possible problems we are facing with the vast human evolution and recreational preferences?
Without much said, population is moving globally. Whether the shift is back to a country of origin or to greener fields, people all over the world are moving, restless from not knowing what is going to happen next with the rapidly changing economy we are currently living in. Thousands of people are losing value on their investments from moving about and the property market is suffering with big players holding back on investments and opting out of major deals with property developers.
The world’s biggest construction site, the U.A.E, is probably the one country that is suffering the hardest from the international movement crisis worldwide. Property prices are expected to fall by up to 60 per cent this year which has resulted in more than 50 per cent of Dubai’s construction projects being postponed or cancelled. This leads to manual workers leaving the country, followed by well educated white collar workers leaving. When they are gone, where will they go and what will they do? Better yet, if educated expats leave, will the UAE survive without the Western influence?
The U.A.E population is made up of approximately 20 per cent national Arabic and an overwhelming 80 per cent expats from all corners of the world. Currently, 1,500 visas are being cancelled daily, which means that well skilled and competent individuals are being forced to their home countries, leaving the place they have helped to develop and taking the red carpet home with them.
The major spotlight is now focusing on the real estate sector. Agents are working longer hours and showing more apartments, villas and office spaces to prospective buyers and leasers than ever before and only few are lucky to close a deal. It comes down to a matter of supply and demand and agencies are realizing that the client will go beyond means to get the best deal, especially with the current fluctuation of markets.
Dubai’s property market is foreseen to decline by up to 10 per cent by 2010 and analyst estimate that the population in Dubai will increase by 6.3 per cent by end of 2009, while 1,500 people are currently being made redundant. The revolutionary movement is happening as we speak and it will be interesting to see how and when this will affect the generations to come.
Dubai property bubble.
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