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.
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