The most striking residential construction initiatives put forward by Dubai developers last week include a multi-billion dollar infusion of foreign investments into the revival of the stalled projects, as well as the launch of new housing projects in the most prestigious Dubai locations with the highest levels of demand.
No less than USD 6 billion will be spent on the revival of several stalled projects in Dubai by a Canadian company Canada Business Holdings (CBH). Iconic Dubai Perl project located at the entrance to the man-made island Palm Jumeirah will be among the first to be re-launched. Given the build-up area of 20 million square feet, the project promises to become an "indoor city" and the largest single building in the world. According to its statement, CBH came here to stay at least for 30 years.
Among the other major launches of the week there was a launch of the first in twenty years new residential community in Dubai’s Jumeirah3. The Kanoo Group will start with only 11 super-luxury villas, but the very fact of the new development in this area clearly speaks of the overall Dubai housing market upturn, including luxury segment.
On the other hand, the affordable housing sector hasn’t lost in activity during October and November. Assured of a high demand for its four previous projects, Danube presented its fifth end-user focused project with offer prices at around the USD 272 psf mark. The ‘Ritz’ features two buildings located in the Al Furjan cluster and close to Discovery Gardens.
It is the affordability as a long-term strategy in the real estate domain that will ensure the emirate’s popularity on the global stage, HSBC experts believe. Expatriate sentiments survey The Expat Explorer conducted by HSBC showed that Dubai takes the leading position among the other world cities and countries by popularity among expats. The newcomers’ ability to save is a main factor boosting their long-term planning capabilities, allowing them to achieve their biggest aspirations such as purchasing a home in Dubai.
Indeed, UAE and Gulf developers have a lot of reasons to be encouraged by HSBC survey findings, as it suggests that Dubai and UAE expats are by far more likely to say they ‘can own additional property’ in their new host country. It is another market facet that local developers should pay heed to.
Overall, October and November in Dubai were characterized with the new activity surge on the part of those who have recently taken a wait-and-see strategy. Thus we should expect new lease and sales offerings, experts say. Developers are sharpening their marketing pitch to make tenants switch over to buying their homes, and coming out with projects aimed at this core audience.