Renewed vigour in realty sector
With the property market soaring and experts asserting that residents should feel safe to be optimistic about the sector, developers have kicked off mega projects to cater to an ever-increasing demand.
Nakheel has awarded contracts worth AED563 million for construction projects at two of its delayed mega communities - Al Furjan and International City. Meanwhile Diamond Developers has commenced work on its AED1.1 billion Dubai Sustainable City project in Dubailand, aiming to deliver the first 100 units by the end of the year. Construction work has also commenced on The Pentominium, billed to be the world's tallest tower.
In addition to picking up where they left off prior to the recession, realtors have also announced new projects in development in addition to those that are ready for the market. Deyaar Development recently announced the selling-out of all residential units at The Atria in the Business Bay district. A sales event held on Sheikh Zayed Road registered AED500 million within hours of opening. Meanwhile, Emaar Properties has announced plans to launch BLVD Crescent, a twin tower development in Downtown Dubai, which will offer views of Burj Khalifa, the Dubai Fountain and the Opera District.
Overall, the future of Dubai's realty sector looks positive, especially with Dubai's $20 billion refinancing agreement with Abu Dhabi and the UAE Central Bank.
"The refinancing deal is a welcome move, clearly indicating that the UAE's economy is back on track," said Joe Tabet, CEO and chairman of the UAE-based Pragma Group which runs Cavalli Club and Cirque Le Soir in Dubai.
The refinancing deal with specifically improve confidence in Dubai's property market, according to Mat Green, head of research and consultancy, CBRE Middle East. "The deal would further give impetus to UAE's growing economy, positively impacting all real estate assets. The emirate is expected to fast track infrastructure and facilities, ranging from real estate and retail to transport links as part of its plans for Expo 2020."
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. Most of the UAE's realty experts seem to agree that Dubai's refinancing agreement deal is bound to result in an upturn in projects and a rise in optimism. We will be following up on developments in the sector and be sure to keep our readers updated on the surge in new projects that are bound to be the result.