Dubai real estate market’s been really dynamic during the last seven days. That accelerated rhythm given to Dubai’s market by Cityscape Global real estate exhibition a week ago could still be felt throughout all the market sectors. All the projects local developers had been holding for this momentous event, are now being promoted very actively.
Among projects presented last week there were 500 villas in the Living Legends by Dubai developer Tanmiyat. 172 villas and the first of 12 apartment buildings in the complex have been already completed. This long-delayed project was revived recently, and today, like the most of other Dubai construction projects stopped during the years of crisis, is being redeveloped and rebranded.
Another new large-scale hospitality, residential and commercial real estate project was launched last week by Meraas: Marsa Al Seef project in Bur Dubai will include 500 hotel units, 220 serviced apartments, and also a number of shops and a 1.8 kilometers waterfront area. Other project by Meraas, carried out in partnership with Meydan will also have a waterfront area alongside Dubai channel, as well as manmade lagoons and beaches in Crystal Lagoon district of Dubai Safa Park. 1,200 new houses will be built there as part of the project’s Phase 1. And the first phase of the most fashionable Dubai location, Dubai Design District (d3) is planned to include 11 office and retail buildings with a total inbuilt area of about 140 thousand square meters. Besides, third party private developers were also granted an opportunity to build property here: land plots in d3 district were put on sale last week.
Such a great number of new real estate projects can naturally raise concerns about market’s oversupply, followed by an even larger decline in prices. But leading real estate market developers advise leaving all your worries behind. Dubai is ready to take all new supply in.
“Many a times people get worried about the bubble and then they get worried about the fall. At this pace there is enough of activity for serious developers to see sales and continue to construct and to move on from project to project. From our point of view, the pace at which things are going is acceptable to us and I believe next year we would expect to see a similar level of interest.” Ajay Rajendran, Vice Chairman, Sobha Developers said.
And Safina Ahmad, head of Residential, CBRE Mena, wrote in the CBRE last report: “Where recent growth has been particularly marked, investors are now expecting either slower or negative growth. Average growth in London and Dubai for example, as well as a number of other international markets, have hit double digit highs for at least two years prior to 2014. We’re now witnessing a market correction and more modest growth with small pockets of localised decline.”
Real estate industry in Dubai has now three major concerns: they are, firstly, the need for affordable housing sector expanding, secondly, prices lowering in the sales segment, and, thirdly, prices stabilization in the lease segment. These are altogether the main market trends in Dubai today.