Many market participants long awaiting for the outcome of the housing prices correction period finally made sure — the danger of the further decline was over, and now it's time to start acting. Thus, Dubai authorities’ plans to start implementing major development projects active phases couldn’t have come at a better time too.
Last week emirate’s authorities and biggest developers announced a visible progress for three Dubai city-forming mega projects, namely Aladdin City in Dubai Creek area, District One residential development in the MBR City and a mixed huge mega development Mall of the World. The first of these projects USD 15 million Aladdin City will start taking real shape by the end of 2016: Dubai Municipality has shortlisted candidates for constructing to three companies and will choose a general contractor soon.
Meanwhile, the owners of the most expensive villas in Dubai, located in the District One of MBR City will be able to enter their homes in June 2016. This project’s launch is planned for Q1 2016, and the developer is confident of demand despite the average pricing of USD 4 million.
2016 in Dubai is about to shape future of the emirate for the years to come. Many major projects that will change the whole city structure will be launched next year, including Mall of the World, a long-term and strategically important project with a total area of 1.7 million square meters. It’s master developer Dubai Holding said to finalize all the preparations in 2016 in order to start construction of 278 houses in 2017.
And market analysts do give developers reasons for their confidence in future. According to the ValuStrat November price index, Dubai housing prices stopped declining for the first time since March last year, when the correction gained momentum. And Reidin even recorded growth in the number of real estate transactions in certain Dubai areas. JLT and Downtown transactions number increased in the autumn months compared to the same period last year.
Property price indexes given by ValuStrat and Reidin are close enough to reality, experts say, which is, however, not so true for all other forecasts. Price index should take into account several different factors, including not only the listed price, but also the actual transaction cost, not only average prices for new housing, which are usually higher, but also the cost of the secondary real estate, as well as the actual number of transactions, not doubled due to re-accounting the same premises sold twice during the accounting period. Thus, the real prices growth and decline rates can differ greatly from those shown by consultancy agencies.
Dubai real estate market started settling down and clearing up after the storms of events that swept it in 2015. And 2016 is expected to be the year of laying new foundations for future stability.