Following the recent statistics from ValuStrat, which recorded price indices growth in the Dubai residential real estate sector, new information comes from other market analysts and market participants on the emirate having started to bottom out.
As imexre.com has found out, Craig Plumb, Head of Research at JLL Mena talked about Dubai’s property market recovery at a recent 2016 Real Estate Development and Investment Meet (REDIM). He gave an accurate forecast about when to expect a new rental prices growth period in Dubai. According to Plumb, it will happen no later than the fourth quarter of the year.
“It is very hard to talk about but sometime towards the end of this year or early 2017 is when we think residential market will bottom out,” he said.
According to JLL, 2016 in Dubai is expected to bring 26,000 more new housing units to the residential sector, but in reality probably no more than 10,000 to 12,000 new apartments and houses will be handed over by the end of the year.
At the same time, Ali Rashid Lootah, Head of one of the largest Dubai developers Nakheel also spoke about the period of "price correction" in Dubai as of something complete in his recent interview to The Financial Times at the industry event in Cannes.
"It was a good lesson for Dubai, - he said. - We do not want the emirate to become too expensive."
In Cannes Nahkeel presented its new real estate projects to European investors. In particular, the project of Deira coast development, which will extend the coastline in the area for another 40 km. The project of Deira development includes the construction of a 550 room hotel under Centara brand, Deira Mall shopping and entertainment center with 6400 shops and cafes, as well as the construction of 1800 room hotel in cooperation with other international partners, such as the Spanish hotel chain RIU and Thai operator Minor Hotel Group. This, and also some major projects from Nakheel on the Palm Jumeirah island excited great interest among foreign investors.