Abu Dhabi: After a challenging 2019 for the property market, property developer Seven Tides, which specialises in upscale residential and hospitality developments, expects 2020 to be a more positive year for the sector with confidence coming back according to its chief executive officer Abdulla Bin Sulayem.
“I firmly believe that we will start to see the overall property market recover in 2020. This has already been evident in the amount of sales transactions that were recorded this year, which are up over 4 per cent, compared with 2018,” Sulayem said.
“Competitive pricing, easy payment plans and low interest rates have encouraged investment into off-plan residential developments in particular. Both luxury and affordable developments should benefit,” he added, highlighting how the market has adapted with favourable incentives as a way to attract potential investors.
Looking ahead, Sulayem said a convergence of multiple factors would provide the property market with the boost it needs.
“The stimulus of Expo 2020 Dubai, which will yield an investment windfall of Dh122 billion — an average Dh12 billion per annum for over a decade — and create around one million jobs over the same period, added to new residency visa initiatives, will start to nudge prices higher in 2020.
“Another important initiative was the announcement that a new real estate committee will be created to ensure that semi-government real estate companies did not compete with private developers, which will help to rebalance the existing supply and demand dynamics,” he added, giving his support to the Higher Real Estate Planning Committee, which was established back in September by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
The committee aims to regulate Dubai’s real estate sector by ensuring its competitiveness and the value added by new real estate development projects to the emirate.
Sulayem said he doesn’t envision new trends forming next year, but instead expects to see what he called a gradual recovery.
“I doubt whether there will be any new trends gaining traction next year, just a gradual and sustainable recovery across the board.
“However, quality developments, built by reputable developers, competitively priced, in prime locations with unique features and guaranteed yields, will continue to attract the lion’s share of investment, especially off-plan sales,” he added.