Slower growth in the Dubai property market is unlikely to keep up in 2016. Such a forecast was recently made by Khalid Bin Kalban, a head of the Dubai leading developer Union Properties at a launch of the Green Community West — phase 3 in Dubai.
Joining the other opinions, expressed by local real estate market key players before, Kalban has completely ruled out the possibility of the Dubai real estate market oversupply, pointing out that rental demand and prices keep rising, and it is a clear sign of a market shortage, rather than excess supply.
“Contractors in Dubai … will decline to take more projects because their plate is full… this will push the supply to later years,” he said. Kalban predicted that in mid-2016 the local housing market will regain its former growth rates after a slowdown in 2015.
“We are expecting the market to pick up from mid-2016 with the geopolitical situation in the region improving with the momentum lasting till 2020,” Kalban said.
Lower prices were especially noticeable in the luxury property sales segment, while the middle and lower price segments saw an increase in investors' interest lately.
Therefore, “Townhouses in the new Green Community project are almost 50 per cent smaller than the villas we launched at the same community 10 years ago. So we have adjusted our project as per the market requirement,” Kalban has revealed.
The Green Community West expansion will include 210 townhouses and 16 duplexes. Housing prices in the community start from USD 850 per square foot.