Making headway in realty sector
Dubai's real estate continues to make a compelling case for investors. Since September last year, Dubai has gone through a phase of fired-up growth in property values, led by highly speculative buying that was created around the aura of the city winning the rights for the World Expo 2020. Between November and late January, asking prices being demanded shot up by 20-30%.
Moreover, the emirate has seen its real estate market stabilising. "Property prices have grown steadily since 2009 but the increase in regulation by Dubai Land Department has led to a more stable growth pattern," said Hussain Sajwani, chairman, Damac Group. "Dubai still remains one of the most affordable metropolitan cities anywhere in the world."
Property prices may still be high, but buyers are increasingly becoming more value conscious, a sentiment that the market has begun to respond to. The shift towards value buying is reflected in the latest transactional data for the city's freehold clusters - Silicon Oasis, Sports City and Jumeirah Village. A Knight Frank report revealed that properties with a price tag of AED10 million and more saw a relatively modest increase of 6.3% in asking values while mainstream locations saw gains of 24% during the second quarter.
Clearly shifting towards being a buyer's market, there has also been an increase in supply with developers announcing new projects everyday. Omniyat plans to build two new towers in Maritime City and Business Bay in addition to its luxury flats on the Palm. Additionally, freehold status will now be granted to some flats sold in Mirdif, giving buyers additional options.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. There has been a clear evolution in the way the Dubai real estate market is moving forward. There is now greater focus on investor needs and buyer requirements rather than developers having the upper hand. There have also been added measures to help bring about stability in a fast-growing market. It is an interesting time for property in Dubai and we can only expect greater improvements to come as we move forward towards the Expo 2020.