Gulf Construction Online - Dubai’s property market set to grow steadily

UAE Focus

Dubai’s property market set to grow steadily

01 January 2013

Dubai’s property market will grow at a steadier and more stable pace over the next year, providing solid investment opportunities for the savvy investor, say leading executives in the industry.

Independent reports have put the growth in prices of real estate in Dubai through 2012 at anywhere from seven to 19 per cent, depending on location and the quality of the project.

Ziad Al Chaar, Damac Properties managing director, said 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.”

Al Chaar looks ahead to the New Year with cautious optimism and provides an insight into the places to invest in 2013.

“Dubai is one of the most regulated real estate markets in the world, offering reassurance and protection for investors. It is a key element which will be the backbone of the steady growth throughout 2013.

“Clients looking to come into the Dubai market should, however, always undergo due diligence before stepping into any transaction and there are four documents which they should insist on seeing: the developers trade licence, a contract in place with a master developer, title deeds and details of the escrow account associated to the project you are interested in. Each of these documents is required by law and every reputable developer should be able to supply you these very easily,” he said.

According to Chaar, there is a major scope for serviced apartment projects in Dubai.

“This is the reason why Damac Properties has announced more than 4,000 luxury serviced hotel apartments in development by the end of 2013,” he said.

Dubai continues to grow at a phenomenal pace, said Chaar.

“It is just 41 years old, but residential property development has really only been operating for 10 years or so – it is still an immature market. This means that prices will continue to fluctuate in the short term,” he said.

“It also means that locations which just 12 months ago were without any infrastructure and felt distant, will come to the fore and become another component of the ‘new’ Dubai in a few years. This is a real opportunity for the savvy investor to get into the market while prices remain low and benefit from substantial capital growth in the medium term,” Chaar said.

Areas such as IMPZ, Jumeirah Village and the Emirates/Al Khail Road area will start to grow in value across 2013, he added.