Investors on realty spree
When examining the UAE real estate market, it's clear that it has evolved greatly from before the recession. The one area where this is most evident is when it comes to protecting the interests of investors, who can now rely on better regulation as well as have a platform to raise their concerns.
Demand has been increasing steadily in the commercial as well as luxury sector. Le Reve in Dubai Marina has topped the list of most expensive apartment deals once again with two bespoke apartments being sold at Dhs38 million and Dhs23 million respectively. Meanwhile, two apartments sold in Kempinski Palm Jumeirah Residences for Dhs11.01 million and Dhs11 million (and placed fourth and fifth on the list).
Housing costs are definitely on the rise, so much so that economists predict that this will be a key factor in pushing the consumer price index figures up during the rest of the year. Emirates NBD predicts that UAE inflation will reach 2.5% this year, up from 0.7% last year - the highest since the double-digit levels of 2008.
Most industry professionals, however, are optimistic on how the market is faring. In fact, it is suggested that the emirate might be ready for a new round of big-ticket developments. According to Arabian Business, some of the areas that have potential for new launches include Wafi, Palm Jumeirah and Dubailand. Currently, prices range from $266 million for almost 1 million sq. ft. in Wafi to $39.5 million for 100,000 sq. ft. in Downtown Dubai.
For investors, the good news is that the UAE is continuing to take steps to protect their interests and ensure cash back on cancelled projects. As the market moves towards greater stability, property conveyancing is also gaining popularity with both buyers and sellers becoming more comfortable with the practice. This helps ensure that the property does not have any financial obligations on it (such as payment outstandings).
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 buying trends has been helpful in understanding the changing nature of the UAE realty market. Be sure to catch our next issue to know more about new mega-projects that are in the pipeline.