For Dubai, things are looking up
Property developers in the UAE are showing no signs of slowing down, whether it be development or planning bigger and better projects. Dubai, especially, is seeing an increased focus on infrastructure development as the emirate gears up for the Expo 2020.
The Dubai Properties Group, for example, has insisted that its new project - 40 new hotels - is complete by 2017. Developers who fail to adhere to the deadline face the possibility of losing their plot. The pressure is definitely on for those in the property sector with the Expo 2020 hype building up.
At the same time, prospects are also looking up for all those involved in the industry. Fears of another property bubble have gone down with most agreeing that the market has entered a "cooling off period." According to JLL, this is a direct result of tighter government regulations and an increasing mismatch between buyer and seller expectations. The consultancy also stressed that new regulations by the government has had a significant impact on stabilising the real estate market.
As a result of increased investor confidence, financial experts have also said that there is bound to be an increase in IPOs in the UAE. In a recent study, Ernst & Young said: "Expect a rush for fourth quarter returns" in global capital-raising markets. The amount raised as a result of IPOs has gone up 53% in the first nine months of the year to US3.5 billion. Emaar Malls has been the most significant deal of the lot, with shares jumping 21% on opening.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The Dubai market is on a trajectory for long term growth with a "great deal of potential," according to Raza Jafar, CEO, ENSHAA PSC. "At this point in time, Dubai's property sector is still grossly underpriced in comparison to its international counterparts which means it has the capacity to still grow significantly in the long term." The emirate's increased attention to infrastructure and the sheer scale of the projects being developed surely seem to go hand in hand with his conclusions.