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Everything, from sales of electronic gadgets to cars and houses, is ruled by the age-old relationship of supply and demand.
As supply increases, it can tend to have a negative effect on demand because people will have more options and, therefore, a better chance of negotiating.
According to Forbes, Dubai was recently voted in the top ten most influential cities in the world after cities like London, New York, Paris and Hong Kong.
It is important, therefore, that we in the real estate industry strive to meet and exceed the highest standards in the world in cooperation with the Dubai Land Department.
Previously, Dubai was a city which was developing from zero and the rest of the world was not aware of what it was like to actually live here.
With the strides Dubai has made, it is now at the forefront of many people’s minds as the desirable destination to be. But this has not come easy. It has taken years of structuring, building and maintaining the different sectors of the emirate including property.
Aside from the countless high-rises, hotel resorts and shopping malls, Dubai has had to ensure it main-tains its culture and identity whilst never failing to amaze the world with every new development.
With constant expectation of the property sector to each time surpass the last achievement, it can be very easy to keep building bigger and better towers but forget to analyze whether it is the right time to bring new supply into the market.
If you oversupply the market with units at a time when the demand is not as high, you run the risk of putting units into a diluted market with less chance of them getting sold.
At the beginning of the year, several developers were releasing developments at a very high rate, such that each week, a new building would come into the market.
One example of this was a major developer promising to bring 52 new buildings into the market this year.
In the current market, this would have been detrimental to the demand for both new and existing developments. We would possibly have seen a major adjustment in prices and, therefore, units would have remained unsold.
Fortunately, developers have been adapting to the market conditions and adjusted to ensure that the prices and inventory increase at a healthy rate.
The market is always open to versatile qualitative developers with a more complete community view to their development plans.
An example of this is Meraas’ The Beach development at Jumeirah Beach Residence (JBR) and City-Walk which holds promise of new caliber of developments.
The government is finalizing plans for more environment-friendly options such as solar panels on res-idential buildings, which could feed power back into the grid.
Demand is shifting to a different type of property. Therefore, developers who are one step ahead are moving further ahead of the market by releasing sustainable projects such as Diamond Developers’ Sustainable City.
With the recently concluded Cityscape Global, the general outlook of the Dubai property market looks promising.
New developments were being showcased and, to some extent, will be redefining Dubai’s identity and solidifying its position as a world hub and gateway to everywhere.
We are confident that the demand for real estate in Dubai will grow at a steady rate, and, at the same time, entertain the world with its astonishing diversity and life-enhancing city planning.
See related story: New supply to stem Dubai realty price spike
Source: Safura Abas, General Manager, Aston Pear Real EState