Dubai in it for the long run
Growth in Dubai's property market may be slowing down, but the future of the real estate market lies in sustainable development, something that UAE-based developers are now paying attention to.
The market is set to gain momentum in 2016 with affordable housing options paving the way, according to the chief of Dubai Investments. Company CEO Khalid bin Kalban said that he doesn't expect to see a price correction in the market.
However, 2016 is expected to see a hike in affordable housing projects since market forces are driving developers to leave luxury behind and focus on the needs of end users. These homes are meant to cater to those earning between AED10,000 and AED25,000.
The Emirates has also turned its attention onto sustainable practices when it comes to the building of new residential towers. The Dubai Electricity and Water Authority (DEWA) has launched the first of its new series of smart initiatives, Shams Dubai. As part of this project, residents across the home will be encouraged to install photovoltaic panels to generate electricity from solar power in buildings and connect them to DEWA's grid.
Meanwhile, investors are also taking a step back. "The drop in buying activity is substantial within the high-end space by more than 60%," says Sameer Lakhani, managing director, Global Capital Partners. "Clearly, investors are taking a breather when it comes to committing funds to property. They are the ones who expect a quick upside to their entry prices and find that's not going to happen now."
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The real estate market in the UAE has not only been growing exponentially, but it has also been developing into one that is more sustainable. It's more than apparent that developers in the region are now thinking about the big picture and focusing on long-term growth.