UAE property market ’booming’
A new report by Tasweek Real Estate Development and Marketing has found that although the UAE property market faces challenges, the market is ‘booming.’
In its Q4 Market Intelligence Report the firm found that UAE property will remain attractive in the year ahead, with the two largest emirates of Dubai and Abu Dhabi enjoying a renewed consumer confidence.
"There are many factors pointing to the continued growth of real estate in the UAE in 2015 and beyond, including a surging population, a resilient economy with an overall inflation rate of less than two per cent, resurgent market confidence, and stricter regulatory controls on the sector,” said Masood Al Awar, CEO of Tasweek.
Whilst the report is very positive, it does also mention that the gross loans/deposit ratio being almost 100 per cent does limit the potential for future growth.
Looking ahead to 2015, Mr Al Awar said: "With preparations for Dubai World Expo 2020 starting to gain steam, we can expect 2015 to be another stellar year for real estate in the UAE despite a number of global challenges.”
He added "The world is watching the UAE’s next moves as an invigorated property hub; we are confident that the country will deliver above and beyond expectations given the market developments of 2014."
The optimistic view of the future for UAE property was echoed recently by Dubai based developer The First Group. Rob Burns, Chief Operating Officer of the company, said:
“There is a real sense of renewed optimism in Dubai, especially given the World Expo win, the success of Dubai World Central and the latest announcement of Mall of the World launch. There are so many exciting things to look forward to and spectacular developments to take place, and we can definitely say that things are really looking up for the city.
“It is a fantastic time right now to be part of the property and hospitality sector, particularly here in Dubai, given the pace at which it has recovered from the global downturn. While many cities are still recovering, there is a real buzz surrounding the future of Dubai, particularly since the World Expo 2020 win.”
Bayut.com’s latest UAE market report meanwhile said that it also expected a stable 2015, with a growing confidence in UAE property.
Haider Ali Khan, chief excutive of Bayut.com, said: "Construction activity is picking up pace again thanks to the revival in real-estate developments and infrastructure projects.”
“The recovery in real-estate prices, a bounce in bank financing for construction and the return of off-plan sales, in particular, have motivated developers to resume the projects that were on hold in both Abu Dhabi and Dubai.”
With the UAE’s real estate market performing strongly, it bodes well for those with interests in UAE property. The market in Dubai in particular has seen a recent slowdown in price rises, with most experts agreeing that this is good for future long-term stability in the emirate. Dubai’s hotel sector in particular is performing well, whilst residential property in Abu Dhabi currently leads the field.
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