Dubai: Dubai’s real estate sector is showing signs of cautious and gradual recovery as residential demand picks up in well-established communities, banks begin lending again and an increase in tourism stimulates demand for hotel properties, developers said at the region’s biggest property event.
Cityscape Global 2012 kicked off in Dubai on Tuesday. The 11th edition of one of the region’s largest international real estate events was officially inaugurated by Shaikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai.
About 26,700 residential units are expected to be completed from 2012 to 2014 outside central Dubai in Jumeirah Village, Dubailand, Dubai Sports City, Dubai Silicon Oasis and Al Furjan, according to the latest report by Jones Lang LaSalle (JLL) titled ‘Dubai Real Estate: Market overview Q3 2012’.
Property developers at the event said they expected the market to climb an upward trend in the next 12 months.
“We have already seen growth in demand and accordingly supply in the last 12 months. The highest demand was for residential units,” Khalid Al Malek, Group CEO of Dubai Properties Group (DPG), said, adding that most demand will be for villas, followed by one- and two-bedroom apartments. “Areas with good transportation and infrastructure will do better.”
Optimistic sentiments
Damac Properties echoes optimistic sentiments about the market. By the end of 2013, the company will have 4,000 units of serviced hotel apartments under construction, Niall McLoughlin, senior vice president of Damac, said.
“I see the real estate industry in Dubai on an upturn,” he said, adding that he has seen price appreciation for properties in Dubai Marina, Downtown Dubai and Shaikh Zayed Road.
“The secondary areas will become good value for money, like Emirates Road and Dubailand. They are potentially good property investments,” he said.
Hotel apartments will also help lead that recovery amid increasing tourist numbers, according to McLoughlin.
Demand for holiday homes in Dubai from India and Lebanon as well as the purchase of apartments for foreign students studying here has also been noticeable, he said.
Good response
Clearly, the show running until Saturday seems to be attracting a good response. “Having grown by 50 per cent from last year, we look forward to welcoming more than 20,000 participants over the next three days as exhibitors, visitors and delegates look to foster tighter business relationships and stay tuned to the latest trends in the global real estate market,” Wouter Molman, Cityscape Global exhibition director, said.
The show will also feature investor round table sessions and four dedicated industry conferences, including the Global Real Estate Summit, the World Architecture Congress, the Retail City Conference and the Alternative Dispute Resolution Conference.
