Pushing full steam ahead
The three days of Cityscape were filled with announcements of new developments as Dubai gears up for a huge rush in construction once again. Over 30,000 people visited the exhibition, marking a 53% increase from last year. Year-on-year growth in Dubai's real estate space will reach a stratospheric 60% by the end of 2013.
Property developer Meydan announced Dhs60 million worth of developments in Dubai, including hotel apartments, retail outlets as well as commercial and residential units. It also announced its Entisar Tower, which will be the first building on Sheikh Zayed Road to offer free-hold units to investors with prices ranging between Dhs2,500 per sq. ft to Dhs3,500 per sq. ft. The developer said it planned to float a tender for construction work on the tower by the end of this year or at the start of 2014. Dubai International Financial Centre also revealed that its plans for expansion will be completed in 10 years with the addition of 17 new buildings across 10 million square feet at a cost of Dhs15 billion.
Union Properties unveiled plans to build a Parisian Champs-Elysees inspired shopping strip in Dubai as part of a major push into retail development. The company had been hard hit by the collapse of property prices in 2008 but is now looking to expand its existing developments. According to Khalid Al Malek, CEO of Dubai Properties Group, the 2008 crisis and the subsequent downturn should not always be the focal point of discussion when it comes to market challenges. He points out that it was a good lesson to learn from but that we shouldn't take that time as a benchmark for the way to do business today. Optimism was high among most developers in Cityscape, who pointed out that buyers were now holding on to their properties instead of looking to make a quick profit.
While some developers have been launching new projects, Damac has been focusing on topping up its existing master-developments : the $3 billion Akoya - set on 28 million square feet and with is association with the Trump Organisation - and the Damac Towers by Paramount in the wider Burj area.
Meanwhile, Nakheel announced that it will resume work on part of its stalled Palm Deira as it pushes ahed with a series of additions to its man-made island projects. Riyadh-based Tanmiyat Group also announced plans to deliver two stalled projects- an ambitious 15 million square foot Living Legends project off Emirates Road in Dubailand, and office towers in Business Bay. Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. If you missed out on Cityscape or were unable to follow all the news around it, we hope that our round-up of key stories and expert opinions has helped give you an overview of some of the exciting developments that were announced. We'll be looking out for analysis pieces on these new developments and be sure to give you the low-down in next week's issue.