Research Findings Confirm Strong Investor Confidence In Dubai Real Estate Market
- November 9, 2013
- Posted by: RKonnect
- Category: Real Estate
In our previous report “Is the Euphoria back in Dubai’s real estate market” we have mentioned how the real estate market in Dubai is showing symptoms of revival. In this report, we will analyze the survey findings from the Cityscape Global 2013 which was held last month in Dubai, UAE. According to survey conducted by our team, the findings suggest strong recovery of Dubai real estate and property market amid increase in economic activity in the emirate and rise in domestic demand due to favorable lending policies of banks.
In addition, the rise in housing rent is also influencing many individuals to buy property in Dubai. Not to mention the Arab spring and recent geopolitical crisis has resulted in of lot of foreign investments into Dubai, because of which it is now known as a safe haven in the Middle East, North Africa and South Asian Region (MENASA) region. The positive sentiments have been well reflected in the recently concluded Cityscape Global 2013 as developers and Investors both seemed to be upbeat about the prospects of the real estate market in Dubai.
Viewpoint of Developers/Investors on Dubai Real Estate Market Growth
The pie charts above are indicative of a strong resurgence in the real estate market in Dubai. According to our survey, almost 90 percent of the respondents believe the real estate market in Dubai is growing. Similarly, around 72 percent of them believe that the real estate market in Dubai will improve in the near future. Only 7 percent of the respondents believe that real estate market will not improve in Dubai in near future.
The recent avatar of Cityscape Global 2013 witnessed numerous visitors nearly tussling with each other near the Emmar stall. Such eagerness among visitors clearly indicates that the mercury is rising again. Besides big turn-around both in terms of exhibitors and visitors, the event was also remarkable as it saw a huge number of individuals projects being announced.
Given below encapsulates some of the major project announcements:-
- Nakheel Water Front Projects: – On 8th of October at Cityscape, Nakheel, the Dubai based real estate developer, announced three waterfront projects. The projects include transformation of four islands at Deira into a 16 million square meter mixed-use destination development; the creation of a boardwalk covering the entire 11km length of Palm Jumeirah’s crescent; besides an exclusive beach club and park, also proposed on the Palm Jumeirah.
- Habtoor Mega City: – Habtoor city is a mega residential project that has been proposed near business bay. The project will be spread across an area of 929,000 square meters and will include three residential towers along with three luxury hotels. The three residential buildings will contribute around 1,460 apartments and the three luxury hotels will contribute around 3,000 suite. One of the remarkable features of the residential property will be eleven luxury penthouses situated on the three residential buildings. Based on classical French style landscape, the total cost of the project has been estimated around USD 3 billion and is expected to be finished by 2016.
- Meydan Green Living Projects: – Named as Hadeq Sheikh Mohammed Bin Rashid, is a green living residential complex with canals, lagoons and horse riding trails which will resemble European countryside. The overall project is proposed on an area of over 5,000,000 square meters.
- Dubai Lagoons: – Cityscape Global 2013 was associated with the official announcement of the world’s largest man made lagoons to be developed by US based Crystal Lagoons. The lagoon will be located in the Meydan green living project mentioned above. The project will be spread across an area of 40 hectares (400,000 square meters) and will be associated with man made beaches, luxury residences and various sports, dining and shopping facilities.
- Meydan Towers: – Meydan has also announced an over 111 floor tower to be located in Shaikh Zayed Road. The proposed tower will be the second tallest tower in Dubai next to Burj Khalifa. The building will include 444 service apartments, sporting facilities, and conference and event centers.
The survey results and the sentiments at the recently concluded Cityscape Global 2013 event validate the belief that Dubai’s property market is back on track. However, as mentioned in the previous report “Factors fuelling Dubai’ real estate market“, the sentiments seem much more matured this time. Though optimistic about the prospects of real estate in Dubai, individuals are still apprehensive about risk driven investments such as off plan properties.
Nevertheless, market dynamics are further expected to get a positive boost if Dubai wins the Expo 2020 bid, which will eventually kick start numerous real estate projects such as listed above along with infrastructure projects such as Dubai Metro expansion.