Sector continues to perform well
With the UAE's continuing economic growth, the country's real estate sector has received a massive boost over the past year. There has been an increasing interest from investors looking to purchase property in the Middle East.
In fact, according to figures from the Dubai Land Department, GCC nationals invested up to AED19 billion in the emirate's property sector. Emiratis accounted for the lion's share of this figure with their investment totaling AED12.5 billion.
“UAE investors made 2,513 transactions worth a total of Dhs12.5 billion in the first six months of the current year and in doing so, were placed at the GCC top spot well above all other investors in Dubai’s real estate market,” said Sultan Butti Bin Mejren director general of DLD. The Dubai Financial Market general index saw an increase of 1.6% on Monday, closing at 4,819.86 points.
Leading developers in the UAE have also reported gains during the second quarter of the year. Damac, for example, said it recorded US$819 million in off-plan sales. Last week, Emaar reported that it experienced a 41% profit increase since 2013.
As per a recent IMF (International Monetary Fund) report, UAE's economic growth is expected to be at 4.8% in 2014 and about 4.5% in the coming year due to the series of mega projects announced over the past 18 months in addition to the Expo 2020 win.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. Things have been looking up when it comes to real estate in Dubai. The slight dip in shares (as a result of leadership changes in Arabtec) has started to pick up with renewed investor interest. Overall, most experts also agree that the emirate's market is more resilient this time around, expressing a positive outlook on Dubai's future. As CEO of Standard Chartered Bank Mohsin Nathani put it: "We are seeing a more robust market this time."