Surge in market participants
With Dubai's real estate sector bouncing back and the World Expo 2020 just around the corner, there has been a huge surge in new entrants on the property sector scene.
A wave of major new development and infrastructure projects ahead of the Expo 2020 is set to position the emirate as a compelling destination for investors. This includes major road & transport work that is currently ongoing in addition to record-breaking towers that are being built across the city.
With this being the case, new developers are entering the market, ready to launch even more projects. One new real estate development company that has been set up involves an alliance between the Sharaf Investment Group and Al Ali Real Estate - Dubai General Properties. The unit will be taking up a mixed-use project in Dubai Maritime City with construction expected to be completed in three years. Meanwhile, Christie's International Real Estate also officially launched in Dubai this past week, coinciding with the auction house's October art and watch offerings.
With all the new development, sales prices are following suit of rental prices in Dubai, dropping 1% in the third quarter. Experts predict a further dip in prices as newer projects emerge in the market - a natural adjustment to ongoing new supply.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The UAE's efforts towards building up its infrastructure hasn't gone unnoticed. At a recent panel discussion, experts agreed that the UAE can fend off global competitors to become the world's premier business capital. "The foundations of the UAE becoming a business capital of the world have been in place for almost 40 years now. Geographically, we are positioned perfectly as a business hub for Africa and the rest of the Middle East and with improved banking regulations and legal frameworks, the UAE can become the business capital in the next 10 to 20 years."