Developers in Dubai pin their hopes on the Dubai Investment Real Estate, expecting development to drive their expected launches forward. To find out what they are doing to build a demand and what else is going on in the Dubai real estate industry, read our market insight.
Whoever expected to soften the Dubai property market in 2016 was undoubtedly incorrect, the official statistics provided last week by the DLD can now confirm. In just 53 days of 2016, the emirates reported transactions worth US$ 18.6 billion, showing signs of a ‘thriving’ property market.
And the official forecast made by Sultan Butti bin Merjen, Director-General of the Dubai Land Department, for the whole year of 2016 is even better, as he predicts that total real estate transactions in Dubai will reach up to US$ 81.6 billion. This will demonstrate the successive expansion of the real estate market for many years in a row, experts claim.
And the developers in Dubai certainly pin their hopes on this expected growth that will drive their planned launches forward. Last week, the Dubai Properties Group announced the construction of 8.2 million square feet of affordable villas in Dubailand, planned to be built in five stages and the first to be ready in Q4-2018. The ‘Serena’ project will feature clusters of four to six villa units, with two and three-bedroom townhouses and semi-detached three-bedroom villas in Phase 1.
In the meantime, fresh launches were exceptionally rich on the front of luxury housing this week. In its Aykon City project, Damac Properties has once again captivated high net value property buyers with its mind-blowing design of luxury apartments with car lifts. The development will be part of a project to expand the Dubai Canal, featuring a cluster of six towers on Shaikh Zayed Lane. Damac expects to generate AED 7 billion plus from sales in all phases of Aykon City, mainly due to the exclusive notion of combining the enthusiasm of investors for luxury properties and luxury cars.
There was an upscale villa project in MBR (Mohammad Bin Rashid) City by Meydan-Sobha Group among other big and long-anticipated Dubai real estate launches, as well as the Meraas-developed No 10 City Walk in Jumeirah 1, which is creating enormous interest ahead of its second quarter completion, and the 90 luxury apartments Royal Bay Residence project by Azizi Developments on the Palm Jumeirah, pres. Due to its exceptional capital growth potential normal for such prime area projects, the last but not least one Azizi project has excited a special high-profile interest of investors.
Dubai’s developers are explicitly stating their intent to build demand now by pushing ahead with their expected project releases, rather than waiting until the next upturn comes around, experts say. Today, Dubai is experiencing a heavy end-user demand from Emiratis and a wide range of nationalities for the first time ever, now having the ability to acquire freehold real estate in Jumeirah and other most sought after areas of Dubai, which will help the Real Estate Companies in Dubai flourish throughout and beyond throughout 2016.
Farukh Islam 