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While presenting its new Dubai projects Palm 360 and Palm Tower to potential investors in Singapore, Head of one of the largest Dubai developers Nakheel said that the emirate’s housing market is on the threshold of a new growth period.
“I think the worst is over,” Lootah told Bloomberg. “Dubai is growing, we are seeing signs of more enquiries — serious enquiries — and I think that’s a sign of recovery. The market is maturing, we are seeing more serious, cautious investors, not speculators,” he added.
Despite the gloomy predictions made by some analysts about the fall in Dubai house prices to continue in 2017, real facts indicate the opposite: it seems that the lowest point in the current downward development of the emirate's real estate market has already been passed or will be passed before the year end.
Notably, that Nakheel itself has recently reported its profits to surge by 22% in the third quarter of the year, amounting to USD 260 million for the above period. At the moment, the developer is about to bring 2300 new housing units to the Dubai housing market.
In case the emirate’s real estate sector will be able even to just keep its current development pace, Dubai will be able to quickly regain its place in the Top-5 most investor-attractive world cities, although it has never left the first fifty. International raters, in particular Agility company, specializing in logistics, highly appreciate the emirate’s efforts in creating comfortable conditions for business activities, and the level of infrastructure development. Due to this fact, UAE was able to take the second place in the annual ranking of the world economies’ growth dynamics in 2016, ceding the leadership only to China. This rating involves the estimate of 45 leading developing world economies according to different criteria, such as the state of the transport network and other infrastructure issues. And infrastructure was a particular area of interest for Dubai authorities in 2016, with plans to further improve the sector in the run-up to Expo 2020.
All this can’t but have an effect on the Dubai real estate sector’s investment attractiveness to foreign and local investors. Foreign investments in Dubai real estate made by representatives of 127 nationalities amounted to USD 15.52 million during the first six months of 2016, according to official data by DLD.
So, why people are still willing to invest in Dubai even now, at times of economic uncertainty in the most of European countries? The answer to this question, according to the Director General of the Dubai Land Department, Sultan Butti Bin Mejren, has three aspects: firstly, it’s high rental yields (10% pa on average), secondly, it’s investment security and region’s stability, as well as the emirate’s confident future outlook as the third aspect (Expo 2020, tourism and urban development strategies, etc.).
