As you take a drive around Dubai, as I did this weekend, it is very noticeable that projects are again on the move. It reminded me of 2008 when a new tower seemed to appear almost overnight.
In Dubai Marina the new metro service is moving at a good pace with the stations now visible, while the Jumeirah Beach Residence beach front has been closed off in preparation of the new hotel and Mall to be built.
Driving along Sheikh Zayed Road there was further evidence of momentum in the Dubai property market with low rise office and retail space appearing and a trip to Dubai Mall highlighted the building work there with the walkway from the metro nearly complete as well as many of the towers in the Business Bay area very close to completion.
As the Dubai property market moves again, a study suggests that interest is returning to the projects which were on hold or previously cancelled. Real estate firm Cluttons reported an increase in demand for “feasibility activity and due diligence being undertaken by developers and investors in projects currently on hold, with the numbers under close scrutiny once more,” it said in a statement.
Jonathan Fothergill, director of UAE valuations at Cluttons told Arabian Business: “Clients are requesting everything from considering the feasibility of the refurbishment of a residential apartment building in Deira to looking at the feasibility of substantially expanding or refurbishing an existing shopping mall.”
Confidence breeds confidence and the physical signs that developers are again moving at pace in the Dubai property market will not only lift the mood in real estate, but in companies across Dubai in general.
Mike Sefton, property consultant at Knight Knox International, stated: “People are starting to have more confidence in the stability of the market.”
The real estate market is so closely tied to consumer sentiment in Dubai that the physical signs of movement will have much more impact that the words we have heard in the past few months. Now we can see it is back and that means we must move quick to benefit from the current prices.