Dubai Real Estate show a remarkable growth, exceeds 129 billion Dirhams

The Dubai Real Estate sector achieves an annual growth of 2.5% in the first half of 2015 in spite of a bleak expectation

Ismail Al Hammadi, Founder and CEO of Al Ruwad Real Estate Consultants, reported that the real estate sector in Dubai showed notable success against a number of international studies which predicted that the real estate sector will see a downfall of 20% in the beginning of the year. But instead, it achieved an average annual rise of 2.5% in the first half of the year in 2015.

Hammadi stressed that the volume of real estate sales exceeded by 129 billion dirhams during the first six months of this year (according to the Land and Property Department in Dubai), compared to 57.6 billion dirhams during the same period last year, and that about 20 thousand investors belonging to 142 different nationalities pumped nearly 53 billion dirhams from January until June (6 months).

"What was happening on ground in Dubai is frankly quite different and very strange. Since we saw that in spite of the rate of residential property prices decrease at first, it then rose to 3% in the second quarter of the year. This is more than the annual growth rate of 2014 which was 2.5%." Al Hammadi said.

The negative speculation of the international community stemmed from the concerns caused by the Oil market and its impact on the UAE being one of the top oil producers in the world.

He also pointed out that the market has witnessed a wave of sales resulting in the developers realizing that the limited-income families are an important part in reviving the market and the reason to add to the continuing growth equation.

"Several huge projects, that have seen the light of day, enabled for more flexible options in terms of prices yet preserving the reputation of Dubai in terms of elegance and status. Some of such projects have fully been sold after less than a day of their launch, with easy settlement options of 1% interest over seven years!" Al Hammadi continued.

Al Hammadi expected that infrastructure projects for the Expo 2020 is going to create a state of sustainable stability for real estate prices in the Emirate of Dubai, particularly in light of the launch of "Meydan One ", a crucial and enormous project, which was unveiled just a few days ago. Housing, commercial and tourism projects that is to be built on 3.6 million square meters. The Project includes the "Dubai One" tower, the tallest residential tower in the world which will be up to to 711 meters high, in addition to a similar announcement of the tallest commercial tower in the world, "Burj 2020" Tower in the Jumeirah Lakes Towers area.

New and Affordable Housing Options Becoming More Available in Dubai

Now that stability is being experienced in the price rates of the real estate market, more affordable housing options now enter the market this part of the year. Developers have set their eyes on making affordable housing options. They will reveal these during the 14th edition of Cityscape Global which brings together more than 300 exhibitors from 30 different countries at Dubai World Trade Centre next month. Taking place from September 8-10, Cityscape Global is the world’s largest real estate investment and development event.

The sharp rise of property prices was attributed to the approval of Dubai as the host for Expo 2020, according to experts.

One of the projects that will be unveiled is MAG 5 Boulevard. Offering over 1,000 residential units as well as providing retail, dining, leisure and entertainment amenities, MAG 5 Boulevard is a 24-hour living, walkable community which will encompass more than 800,000 square feet of land. MAG 5 Property Development will be launching Phase 2 of the project at Cityscape.

Mohammed Al Awadhi, VP, Real Estate, Dubai World Central, said: "By 2020, DWC is projected to become a self-sustained urban ecosystem where thousands of professionals and their families will live and work."

The event will help put into perspective the next steps at the future, as well as the reality of the Dubai property market.

Event director Molman mentioned that the mid-term and long-term status of real estate in Dubai is healthy, despite the fluctuating rates. This is reflected by the number of attendees of the 14th edition of Cityscape Global, where they expect the biggest assembly of exhibitors since 2008.

Craig Plumb, Head of Research at JLL Mena, said: "We expect transaction volumes and, subsequently sale prices, to drop further in the second half of the year.  But the single digit price correction we saw in the first half of the year is a sharp contrast to declines we witnessed in 2008/2009 and is a clear indication that the market is maturing."

Something novel will take place in the Cityscape event this year. The global event that’s co-located in different conferences will be staged on the day before the exhibition. The new format is expected to facilitate the coming together of more than 800 senior real estate professionals and government official who will explore opportunities and find solutions to key challenges affecting the industry today.

The Facilities Management conference, jointly organised with Middle East Facilities Management Association (MEFMA), and the Real Estate Brokers will run alongside the ‘Dubai Market Overview’ on September 7 at the Conrad Hotel, Dubai.

Also running along with the exhibition is the Cityscape Awards for Emerging Markets. The awards programme will be looking to attract hundreds of entries from developers and architects behind real estate developments across emerging markets globally. Winners will be announced at an elaborate ceremony taking place at the Conrad Hotel, Dubai on September 8.