Dubai market remains bullish
The property sector in Dubai continues to outperform other markets in the region with a resurgence of off-plan sales, as developers woo buyers with attractive and easy payment options.
In a rapidly rising housing market, buying off-plan actually enables investors and home buyers to buy property at a lower price as opposed to the post construction phase, says Robin Teh, country manager, Director Valuations and Advisory at Chesterton Mena.
Leading developers have been at the forefront of new launches in prime locations. Aldar Properties announced that it is mulling up to 20 new development projects. Meanwhile, Meraas Holdings' Jumeirah Gardens project, the biggest in terms of value, is estimated at $89.5 billion and is due for completion in 2021, followed by Dubai Holding's Dubai Land development, valued at $61 billion with a completion date set in 2020.
The ongoing $16.7 billion Dubai World Central development that will be completed in 2030 comes next, followed by Limitless' Downtown Jebel Ali project, estimated at $14.6 billion set for completion in 2020.
Other landmark projects include the ongoing Business Bay project, currently valued at $11.2 billion, which is expected to be fully completed within two years. Mohammed bin Rashid City, which is being developed jointly by Dubai Holding, Emaar and Meydan Sobha, is valued at a cost of $11 billion and will be ready by 2023. Emaar's Downtown Dubai development project is just another example with a budget of $10.9 billion and expected to be ready for completion by 2020.
Lower off-plan prices, economic stability and better liquidity in the market are key factors driving the resurgence of the market, Robin said in a report. The sheer volume of projects in development "clearly reflects the positive sentiment in the investment scenario of the economy which is expected to continue in medium term."
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. While growth and development continue on a positive trend, Dubai home prices slowed in the first quarter after financial authorities took steps to cool the market. With banks increasing exposure to the UAE's booming real estate industry, it's clear that the general view is that this time things will be different.