Well-rounded growth on horizon
During the real estate market boom a few years ago, prices of prime properties skyrocketed. However, this time around, it’s the rest of Dubai that’s picking up – even the areas once considered “budget” locations.
In our previous edition, we highlighted the growing popularity of International City and the declining demand for JBR. A new report by real estate advisory firm Jones Lang LaSalle affirms these trends, pointing out that as of June 2013, there were about 360,000 residential units in the areas they monitored. Most of the newer projects in development are, according to the report, located outside central Dubai.
It’s difficult to predict demand in the future. While newer projects are definitely all the buzz now, prime properties are also looking at expansion. JBR’s declining popularity has been attributed to ongoing construction projects, but over 300 new residential apartments will be ready in the area by the end of the year.
On one hand, there is the announcement of all these new developments that are almost ready to be handed over and on the other, Dubai’s real estate regulator announced that the Dhs3 billion Beachfront Living project that was being constructed in the Waterfront has been cancelled. Investors have until August 1 to submit their claims in regards to the project that was supposed to include a 29-storey hotel and a 42-storey residential tower.
In the bigger picture, there is a lot of good news for investors. According to a senior government official, the new real estate protection law, Tanweer, is ready and is just awaiting clearance from concerned authorities. The law is aimed at protecting the interests of investors by ensuring they get a full refund if a developer fails to deliver or breaches the contract.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. We hope that our round-up of stories on some of the most interesting patterns in property demand and regulatory changes has been insightful. Be sure to catch our next issue to find out more about the latest on the market.