Demand & Supply

Article 1. (Demand & Supply)

Abdul Basit. “Domestic Demand to keep Property Market Resilient.” Khaleej Times: January, 23rd, 2010

http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/business/2010/January/business_January520.xml§ion=business

Summary

Dubai has seen huge residential developments in its lands during last few years to recover the incremental increase in demands in its real estate sector as a result of the global trust of the position of Dubai as one of the best economical place in the world. Thousands of residential units had released during the last years, while more units are expected to be available in the markets soon along with huge construction projects such as Palm fronds & Burj Kalifah to cover the expected demand. However; the world economical recession caused many changes in the real estate's market in the region and in particular in Dubai. One of the biggest impacts of this crisis is an oversupply into properties in Dubai.

Many analysts expected that the demand on real estate in Dubai would be increased dramatically during the running year including purchasing or renting new apartments by those looking for luxury apartments with affordable price. The reduce in income of some of households wasn't an obstacle in getting new units in Dubai, which give an indication that the price afforded is less than or within the income limits of Dubai Residents.

Explanation

The main key issues in this article are about Supply and Demand of real estate in Dubai. A demand curve shows the quantity demanded as a function of price, generally, the demand curve slopes downward. Changes in price are represented by movements along the demand curve, while changes in other factors, such as income & the prices of related properties will lead to a shift in Demand curve. On the other hand the supply curve shows the quantity supplied as a function of price, other things equal. The effect of a change in price is represented by a movement...