Business | Property
Dubai real estate still set for solid growth
The future of Dubai and UAE real estate will be more successful and solid than in previous years, due to lessons learned during the economic crash.
- By Suzanne Fenton, Staff Reporter
- Published: 23:36 December 3, 2008
Dubai: The future of Dubai and UAE real estate will be more successful and solid than in previous years, due to lessons learned during the economic crash.
Both developers and property analysts are keen to reassure investors that while days seem dark right now, next year will be bright.
Many see last year's soaring prices and astronomical profits as symptoms of an immature market dominated by speculators chasing short-term gains.
"Despite the excitement they generate, sky-high profits are both unsustainable and unhealthy. Ultimately, they create unrealistic expectations about future performance, especially because high prices hurt demand," Cliff Kelaita, chief executive officer and chairman of Landmark Properties, said in a memo to his clients.
Such displays of transparent communication are signs of a maturing market, one that will be more successful in the future.
"There are many reasons to be optimistic about Dubai's resilience during this downturn. Despite worsening economic conditions in other parts of the world, the UAE and GCC remain on track for solid growth," Kelaita said.
6% growth
The UAE's economy is forecast to grow around 6 per cent in 2009, far above the global average growth of 2.2 per cent, predicted by the International Monetary Fund.
Dubai's property market, while slow at the moment, will attract long-term investors next year once the panic and negative sentiment are over. Speculators are abandoning the market, house prices are coming down leaving 2009 the year for the end-user.
Your comments
I do not think the real estate will go up again any time soon. I think this crisis has become a blessing for many people. Reduction in house rents, properties, food and oil. I see people praying for the crisis to go on.
From A Reader
Dubai,UAE
Posted: December 04, 2008, 13:28
Does Gulf News really believe this? How can next year be bright? The crisis has not even started yet.
Sam
Dubai,UAE
Posted: December 04, 2008, 13:22
I hope the report is true because I believe UAE has enough financial strength in its own to pick itself up again.
Syed Raffi
Hyderabad,India
Posted: December 04, 2008, 13:05
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