Dubai realty sees sustainable growth

Dubai RealtyYash Shah Sales Manager, SPF Realty

Over the past couple of years, the Dubai real estate sector has witnessed sharp growth, with a significant rise in demand for properties.

This was mainly due to the positive buzz in connection with the emirate’s hosting of the World Expo 2020. The end of last year particularly witnessed sustainable and sensible growth which attracted property investors.

The supply of properties in Dubai’s buoyant property sector is predicted to go through a stable level in the next few years. The Middle East investment professional study recently revealed that this trend may continue specifically in the next three years.

Amidst signs of sensible and sustainable growth, the residential property segment continues to be the most prominent among all the other sectors.

However, commercial real estate prices in Dubai also came to moderate and more sustainable levels. There has been a slight surge in enquiries for commercial plots. The demand is going to help close the gap in the current available commercial space. This will also help the supply that is nearly ready to be added to the market.

Meanwhile, there is great potential growth in the Dubai real estate sector. Its capacity is expected to grow significantly in the long term. Investors, thus, have the opportunity to build real estate assets here. This argument becomes more relevant when we consider the results of many global studies that position Dubai among the world’s most sought-after cities in terms of real estate investments.

The most recent industry report reiterates that Dubai continues to be ranked among the world’s top 20 most dynamic cities.

Dubai is already a cosmopolitan city, well-established by itself among the world’s most promising financial hubs.

Investors from around the world prefer Dubai as an investment destination, considering the strength of the city’s infrastructure and the quality of its existing as well as new projects in the property sector.

As the city recovered from the financial crisis in 2012, a wave of foreign investments hit the Dubai prime property market.

The city’s preparation to host the mega event in 2020 is currently witnessing a surge, with an esti-mated investment of more than Dh25 billion in infrastructure-related projects across the city.

To cope with the housing demand and to showcase other activities for an expected crowd of more than 25 million, the emirate may be in need of low-end and ultra-luxury properties in the next five years.

The momentum is expected to continue with activities bolstered by major-project spending related to the hosting of the event.

The maturity of the real estate market is currently going through an interesting phase, where investors are more concerned about the quality and the location of the property.

They also prefer reputed developers and real estate service providers with an excellent track record in terms of ensuring the best service and commitment to delivering projects as scheduled.

This softening of therealty market is a positive sign in many ways as stability is something that the emirate needs in the long term.

The current year looks promising to the market, with growth in demand specifically for luxury properties. The luxury property segment not only attracts residents from the elite group, but also lures investors, property heavyweights and tourists.

In reality, there has always been a greater demand for the city’s premium locations that feature the most sought-after addresses considered as status symbols.

Source: Yash Shah, Sales Manager, SPF Realty


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