Dubai realty in healthy phase. Weekly Dubai real estate news digest. Issue 85

15.02.2015
Investors turn focus on to realty
Welcome to the eighty-fifth issue of Market Insight, your weekly guide to what's happening in the Dubai real estate market.
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MARKET INSIGHT. Weekly guide to Dubai's property scene
Issue 85 |  February 15, 2015

Investors turn focus on to realty

 
Real estate is now considered a sound investment in Dubai. This marks a significant change in investor sentiment, which is generally on an upward trend when it comes to the stabilising property market in the Emirates. 

Undoubtedly, the market cannot be left unaffected by changes in the economy. In fact, 88% of investment professionals in the Middle East agreed that the fall in oil prices was not beneficial to the sustainability of the UAE economy. Couple that with the fact that the UAE's property market has been stabilising over the past six months, there is hesitation on the part of investors.

However, this also means that many foreign investors have been priced out of Dubai, according to Jesse Downs, managing director, Phidar Advisory. "The remaining investors are purchasing based on sustainable, dividend-driven investment strategies. And this benefits us all." According to him, by reducing the risk of speculation, Dubai can return to a more sustainable trajectory of economic growth. "Stable and predictable rents may make boring headlines, but do achieve the primary purpose of property - facilitate growth of the entire economy, not just one sector."

At the same time, Dubai's developers are not easing up on the market, continuing to roll out one spectacular project after another. Now, work is set to commence on Aladdin City - a series of towers and bridges that will be reminiscent of the famous children's tale. "The project aims to [build] icons of legends of the past," according to Dubai Municipality Director General Hussein Lootah. The project is waiting to be registered with the Unesco World Heritage committee. 


Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. If one trend is emerging, it's the maturing of the real estate market. Now, the sector is understanding its role in the Dubai economy. Rather than focusing on instant growth of just one sector, there is growing awareness that stability is what will pave the way forward. 

Sincerely,

Pashma Manglani

Editor


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Steady prices to affect economy: Investors

Property prices in the UAE will remain steady over the next three years and will have a slowing down affect on the UAE economy, according to a survey of investment professionals in the Middle East.

The National reported that of the 166 CFA Institute members surveyed between January 13 and 22, 57% said they expected real estate prices would not increase and 40% believed it would affect economic growth.

About 88 per cent of respondents said that the fall in oil prices was not beneficial to the sustainability of the UAE economy.

 

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Property moguls bet on another boom

Dubai's upcoming mega-projects makes some of the city's most oldest real estate moguls believe there's another boom coming.

Speaking to the Wall Street Journal, the controversial Saif Qurashi says, “Dubai is still full of opportunity.” Among other projects, he has rekindled plans to build a Great Britain-themed resort on “The World”—an archipelago of some 300 islands already built at sea by government-owned developer Nakheel.

 

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'Speculators have been priced out'

Many foreign investors have been priced out of Dubai, especially speculators, according to a Gulf News report.

The remaining investors are purchasing based on sustainable, dividend-driven investment strategies, says Jesse Downs, managing director, Phidar Advisory.

As supply expansion puts downward pressure on residential rents, average rents will soften in most areas and, combined with upward pressure on yields, average residential sale prices should continue to decrease in the coming year.

 

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New budget flats at Sports City

GGICO's Properties arms has announced the launch of a new, budget property development in Dubai Sports City, according to Arabian Business.

The firm said that the freehold complex, Grand Horizon Apartments, is due to complete in April. Units will range in size from 825-1,150 square feet, and the building offers a range of amenities including a pool, gym, sauna and steam room facilities. Prices at the development will start from AED799,846.


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Dubai among top 20 dynamic cities

Dubai continues to be ranked among the top 20 most dynamic cities in the world, according to JLL.

The emirate is ranked 13th on the new list. The consultancy predicts that with the Expo 2020 approaching, the emirate is set to move up the ranks. 

London, San Jose, Beijing, Shenzhen and Shanghai lead the 2015 ranking, Emirates 24/7 reported.


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Work on 'Aladdin City' to start in '16

Construction work on 'Aladdin City', a project inspired by the tales of Aladdin and Sindbad, will start next year, Dubai Municipality chief told Emirates 24|7.

“We plan to start work on the project next year. We have our own funds to finance the project,” Director-General Hussain Nasser Lootah told this website on sidelines of the third Government Summit that concluded on Wednesday.

The project, which was announced in April 2014, will have three towers, comprising commercial and hotel space. It will have air-conditioned bridges with moving floor to connect the towers, driveways and parking lots.


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