DAMAC Properties Senior Vice President, Niall McLoughlin, said that ‘many areas have already recovered. Prices have stabilised last year and have continued to grow at a steady pace in 2012. Prime real estate areas such as Dubai Marina, Sheikh Zayed Road and the Burj Area are performing strongly as the infrastructure is in place and demand is high.’
As a resident of Dubai for more than five years it is clear to see that the cranes are moving again, towers are growing, floors are being added and more projects are reaching handover stage.
Over the past few years and since the 2008/09 dip there was a period of cynicism with residents and international investors, many who had had their fingers burned, reluctant to accept the commentary of developers who were trying to inject life back into the market.
However with Emaar, Nakeel and Aldar returning to profit and the Land Department announcing the highest number of unit sales and unit value recorded during any July on record, is it time to recognise that Dubai is a strong investment opportunity again?
People are already telling me that if I don’t buy into the market now I will be left behind (again) and projects will be out of my price bracket.
I think the key is to invest in the Dubai property market for the long-term, not the short term ‘flip and win’.
If you are looking at an investment in a prime area such as Dubai Marina or the Burj Area, prices are almost certainly going to grow as the popularity of these areas drives demand. Rental prices are already pushing past the standard 5% pa and while there remains good supply in other areas, people will still want to live in the luxurious areas. The positive comments from DAMAC Properties come on the back of two recent independent reports both pointing to an upward turn in Dubai’s property market valuations.
Knight Frank reported that Dubai’s prime property had seen growth of nearly six per cent in the first half of this year.
According to the report Dubai remains in the top performing 15 cities worldwide and number one in the Middle East throughout Q2 with buoyant Asian markets and resurgence in the main European capitals providing a stimulus for growth.
In a sign of further support to the sentiment that Dubai’s real estate market is on its way back to former glories, a report by Asteco stated average apartment sales prices had increased between eight to nine per cent from Q1 – Q2 2012 in key locations including Dubai Marina and Downtown Dubai.