Eye on the future
A successful Dubai Expo 2020 bid would be a major game changer for the region's burgeoning real estate sector, according to Danube Founder and Chairman Rizwan Sajan.
He pointed out that the event would boost greater optimism and reinforce buoyant confidence. Year-to-date property sales in Dubai have grown beyond 22%, splitting industry leaders and analysts on whether a property bubble is emerging. According to Andrew Scott, a professor at economics at the London Business School, the expo would boost the local economy by as much as 1%, representing billions for the emirate.
Dubai is already among the front-runners in prime residential property rent growth, as per an index released by Knight Frank. While globally, annual rents are 5.3% higher than they were 12 months ago, in Dubai, rents rose 15% respectively on an annual basis.
With the conclusion of Cityscape, there has been a series of announcements of new developments. According to a new report by real estate consultancy CBRE, developers with proven track records have been at the forefront of launching new projects in Dubai over the past two years. The report attributes the change to more enforcement from the Real Estate Regulatory Agency (RERA), imposing greater requirements on developers.
Office rents in Dubai have slowed down in the third quarter, but the first six months of 2013 have seen the lease rate rising. New areas such as Business Bay, Jumeirah Lakes Towers, Jebel Ali, Dubai Silicon Oasis, Sheikh Zayed Road and Tecom continue to improve and are experiencing rental growth.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. Dubai's bid for the Expo 2020 is bound to have a significant impact on the industry and we hope that our round-up of key stories and expert opinions has helped give you an overview of some of the developments that are soon to follow. We'll be following market changes and be sure to update you on the latest realty news.