Dubai Showing Stabilized Growth Rates, says Financial Times
The current market conditions in Dubai are conducive to sustained investment, with real estate prices almost 25% below the 2008 peak, according to a recent report in the Financial Times.
The article went on to say that yields of 7 per cent gross are now realistic, ensuring that investment activity remains healthy with the emirate set to attract growing demand as a safe haven for real estate investment, thanks to relaxed laws and clear regulations. It added that, despite a short-term drop in some areas, major projects in the city such as Dubai Marina, the Palm Jumeirah and Jumeirah Lakes Towers had not been affected in a big way.
The article is supported by the recent release of tourism figures for the emirate, which show a 9 per cent rise in the first half of this year. Dubai Tourism & Commerce Authority (DTCM) stated that the total number of visitors who entered Dubai during the first half of the year 2015 reached 7 million.
The report highlighted two important factors attracting visitors to the city: safety and comfort. The report also confirmed that Dubai is the first in the world in welcoming visitors helped by the various transportation facilities available at Dubai airports provided by RTA.
Ziad El Chaar, Managing Director – DAMAC Properties said: “Everything coming out of Dubai points towards a market conducive to future growth, in a safe and well regulated environment. Despite short term fluctuations in pricing, we are still seeing healthy investment flows into the market, and the tourism increases give further weight to the predictions that Dubai is on the right path.”
He added: “The increasing number of visitors to Dubai is also a strong indicator about the city’s appeal to people from all over the world. With the numbers growing year after year, the hospitality sector in Dubai, and the real estate industry in general, will see a huge boost.”
He added: “The positive activity on the travel & tourism front justifies the high demand on accommodation in the short, medium and long term, with Dubai set to host over 20 million visitors in the year 2020. Our model at DAMAC Properties to offer aspirational luxury living alongside high quality serviced apartments - through DAMAC Maison and NAIA in key touristic areas of Dubai - has been shown to provide the best investment opportunities to buyers looking to access this booming city.”
Dubai International Airport already serves 70 million travellers a year; a number which is predicted to rise as high as 200 million; this comes at a time when the city is preparing to host the World Expo 2020, taking visitors to a high of 25 million annually. Jebel Ali Port is also on track to become the world’s largest within the next 15 years, as it becomes China’s main logistical hub in the Middle East and Africa. A recent census also pointed to a 20% growth in overall population in the UAE by 2030.
As of 30th June 2015, DAMAC Properties has delivered 14,375 homes and has a development portfolio of over 37,000 units at various stages of progress and planning.