Dubai realty going strong
The year 2013 has proven to be exceptional in reviving Dubai's property market and in just nine months, the city has been transformed from a buyer's market to a seller's market.
While some experts have been concerned about a property bubble, Central Bank governor Sultan Al Suwaidi assuages fears by saying that a more prudent approach by banks and recently introduced mortgage caps will prevent a rerun of the 2008
housing market collapse. He further adds, "We're not worried. We can sleep at night."
Rents in high-end areas of the city continue to soar. According to Bayut.com statistics, rates are spiking in apartments for rent in Dubai Marina but Downtown Dubai, its strongest competitor, has failed to keep up with the rising trend.
Seeing the market buoyant has encouraged developers to kick-start projects that have been on hold and also to announce bigger and better developments. In fact, Arabtec Construction has won a Dhs1.8 billion contract to build what will be one of Dubai's ten tallest buildings. With 77 floors, the tower will be the tallest building to start construction in Dubai since the global financial crisis and is the latest evidence of rebounding confidence in the property market.
The Dubai developer Limitless is to restart construction of its first apartment block at The Galleries in Downtown Jebel Ali, consisting of 323 flats for lease. The project had stopped in 2010, following the global financial crisis, leaving the block 70 per cent finished.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The past two months has seen the announcement of exciting new developments, clearly showing how rapidly the market is recovering. With soaring demand, property owners definitely have the upper hand and this is why the government's recently enforced measures play a greater role in regulating the market. We hope our round-up of key stories and expert opinions have helped in understanding how the new regulations will help in preventing another market crash in addition to highlighting key new projects.