Ask a property investor their thoughts towards purchasing property in the United Arab Emirates, and the likelihood is their eyes will roll towards the heavens as they recall the days of properties increasing up to 30% in a year. Halycon days for the short term property investor, which have seemingly moved on. So where does this leave the Dubai real estate markets, and what are the prospects for people still looking to purchase property in Dubai?

The past few years in the Dubai property market have been characterised by fast investment and fast sell, and flipping properties became the order of the day. Property investors focused solely on the capital appreciation, fuelled by big incentives from developers and increasing levels of liquidity throughout the region. This demand focused market brought about large levels of capital appreciation, as investors speculated on what Dubai was to become.

Without doubt, Dubai has become a booming real estate market in recent years. Driven by increasing confidence and demand, two powerful and yet ultimately necessary factors in any young real estate market. However, underneath the impressive growth statistics lay a number of fundamental concerns, predominantly focused around the questionable sustainability of a 30% growth rate. In investment and real estate circles, talk of a correction in prices was evident as far back as 18 months ago. On a global scale, concerns existed on the back of a growing culture of credit, the impacts of which we are seeing throughout the major financial markets at present.

The market for property in Dubai is undoubtedly evolving, and what we are witnessing at present is a move towards a more mature real estate market. Whilst this may prove distasteful to investors seeking the short term gains of recent years, it does seem to laying the foundations for a much stronger and more sustainable real estate market. A stronger focus on sound fundamentals, coupled with increasing amounts of due diligence carried out prior to purchase will result in more strategic, long term investment in property in Dubai. Good locations and high quality developments are set to become the focus of the more discerning property investors in the years to come.

Even the most cursory glance at the region would suggest the opportunities that will exist for long term investment. Increasing levels of tourism throughout the region, coupled with the large numbers of companies relocating to the new commercial hub of the Middle East would suggest an increasing population over a sustained period. The gradual realising of projects such as the impressive Dubailand and its superb Dubai Sports City project will only serve to increase the global profile of Dubai, leading to increasing demand for property throughout Dubai.