Realty market proves resilient
The UAE's real estate market has been growing exponentially with a surge in demand for property across sectors.
As a result, many of the projects that were stalled in 2008 after the economic recession have picked up again with an increasing number of investors interested in getting involved. At the peak of the downturn, there were an estimated 150 projects that had gone past the initial construction works before their developers wound them down. Since the market has picked up, these numbers are being steadily whittled down. Dubai Land Department's Tanmia programme has played a part in restoring 36 projects with 11,158 units; in the process 6,641 investors now have confirmed units in these.
In addition to restarting existing projects, there has been a rise in the number of new projects in the city. Deyaar Development, for example, said it grew the number of properties it was managing on behalf of landlords by over 10% in the last year. The property developer said it had added 2,600 new homes and offices to its portfolio in 2013.
Meanwhile, Emaar has launched its MBR City project - Mulberry at Park Heights, the first residential apartment complex in Dubai Hills Estate. These include 330 premium apartments. The developer of Dubai Lagoon in Dubai Investment Park has also confirmed funding is in place to expedite the completion of its master development. Dubai Lagoon comprises over 3,800 apartments in 52 low-rise buildings divided into seven zones, retail components and a community-catered shopping mall.
In fact, demand has gone so high that property developer Nakheel has said it would be charging anyone attending a land auction for plots at Jumeirah Park an entry fee of AED1,000. The firm reported last year that it had completed more than 3,150 new homes and that the amount of cash it had collected from customers nearly doubled from AED3.7 billion in 2012 to AED7.1 billion in 2013 as home buyers made their final payments on projects that had been delayed by the financial crisis.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The year 2014 is bound to bring some serious changes in the property market in the UAE, with new regulations coming up and property owners taking unique steps to cater to the massive demand. We'll be following up on the latest in all things investment-related and ensure that our readers are aware of all aspects of Dubai's success story.