An investor's market
It’s been a happening week for investors in the UAE with big announcements that demonstrate the market’s commitment to protecting their interests.
His Highness Sheikh Mohammed Bin Rashid Al Maktoum issued a decree that set up a committee to liquidate real estate projects that were cancelled from the time of the recession. The announcement, which means investors will get a refund through the liquidation of developers’ assets, has been well-received by property analysts (who predict that this will encourage further investment) as well as by investors. As an additional measure, the Dubai Land Department is currently studying 158 real estate projects that had been put on hold and is considering restarting these.
The signs that confidence in the UAE market is high are all there. In the first six months of 2013, there has reportedly been a total of Dhs53 billion worth of investment in the real estate sector. Indian investors topped the list for foreign investment with 499 involved in transactions worth over Dhs8 billion, followed by Pakistani and British investors.
While there has been much news on the rising prices in developing areas, there is finally something on Dubai’s prime property market, where prices have gone up by more than a tenth in the first half of the year. This makes Dubai's prime property one of the fastest-growing markets in the entire world (coming only second to Jakarta). Demand is prevalent in the region and many investors are cash buyers, according to researchers.
Rental prices are on the rise too, going up 30% in the past year, especially in areas like Dubai Sports City, Dubai Silicon Oasis and near Trade Centre. Analysts predict that residential rent hikes will continue into the second half of this year, rising for at least another 10%. Dubai’s bid for the World Expo 2020 has been one of the factors that has contributed to this growth and will continue to spur investment until one of the nominated cities has been picked to host the expo.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. For this week, it's clear that there have been measures taken to pave the way for Dubai becoming an investor's market and that there are real signs of recovery based on investor spending. Be sure to catch our next issue to find out more about the latest real estate developments that hit the city.