As we turn the corner into the home straight of 2012, www.dubaipropertyinvest.com dusted off its crystal ball and took a look at what to expect in the Dubai property market in 2013.
Recent announcements by the Dubai Government are an additional fillip to a market which has seen sustained and improved growth throughout 2012.
That key word we keep talking about here: Confidence is again riding high (hopefully not too high) and the market is more stable than it has been in the past three to four years.
Executives are starting to think about the direction of the market in Dubai and lay out their plans for the coming year, and supporting that with investment.
Ziad Al Chaar, DAMAC Properties Managing Director, told us that growth is sustainable in the near future, if you know where to look: “2012 has delivered on our predictions at the start of the year – prices in the Dubai market steadily grew with each quarter outperforming the last. In 2013 buyers will definitely be able to benefit from this capital growth, but will need to be very savvy about where they invest and in which projects in each area.”
And this is a key element. While we often look at numbers and data across the board in Dubai, the market remains fragmented with some areas driving premium prices and others yet to fire into action. This creates opportunity for investment, but new clients to the market should be careful and do their research.
Look for the areas where the Government have committed to infrastructure investment over 2013 to provide a guide to where the latest projects will not only be completed in good time, but where services will also be close to hand.
“Encouragingly, there are indications that some of the lessons of the last real estate crisis have been learned,” said Jones Lang LaSalle in its latest look at the Dubai market.
“This is still Dubai and it is as ambitious as ever but we are also seeing a more mature and considered approach which is only going to benefit the long term health and credibility of the real estate sector amongst domestic and international investors and stakeholders,” added Alan Robertson, chief executive officer, of Jones Lang LaSalle in the Middle East and North Africa.
This more stable take on development should hold Dubai in good stead through 2013 with job opportunities created as the cranes swing back into action. There will also be a host of projects actually coming on line next year from developers who focused on delivery rather than new announcements over the past couple of years.
Next year could turn out to be one of the most consistent of recent years. We expect to see less erratic movement in prices across the twelve months with a steady climb of 4-5% per quarter in the most sought after locations.
Do you agree with our assessment of what is to come in 2013? We would love to hear from you in the comments section below, or joining us on Twitter, @dxbpropinvest.