The Dubai property market has seen a 25% rise in transactions during the first quarter of 2017. The emirate is seen as a safe haven for global investors, and is currently planning how to attract more international investors.
“We have a strong appeal to international investors,” commented Ahmad Thani Al Matrooshi, MD of Emaar Properties, at the recent International Property Show (IPS). “As developers, we can do the marketing but we need the continuous support of the DLD [Dubai Land Department] and banks in completing transactions getting the money abroad.”
Attendees at the show, which was organised in collaboration with the Dubai Land Department, discussed many factors facing Dubai’s property industry. Oil prices, a dollar-pegged local currency, banks’ policies on money transfers, reconsidering the mortgage cap set by the UAE Central Bank, possible effects of VAT in 2018, balancing supply and demand, incentives to investors and the affordability of housing for end-users were all explored under the theme ‘Upgrading real estate sector and investment promotion’.
“80% of the demand will come from the international market,” explained Masood Al Awar, chief commercial officer at Dubai Properties, when quizzed on supply and demand.
“However, as of today, not even 50% comes from it – which means that we still have a huge market to conquer and investors to attract moving towards 2020. So, all developers will have enough demand for the supply they will put into the market.”
Sultan Butti bin Mejren, director-general of the Dubai Land Department, concluded: “This forum was a good platform for knowledge sharing, exchange of views and in-depth discussion on concerns facing real estate developers, sellers and buyers. We hope this is the first of several events to be held regularly to facilitate more understanding and cooperation among the real estate community in order to upgrade the property sector and attract investors and developers in Dubai.”
Essam Hasan Saleh, Jumeirah Golf Estates executive director for business development and property management, called for coordination between different stakeholders to control oversupply.
Dismissing any oversupply concerns, Marwan Bin Ghalaita, CEO of the Real Estate Regulatory Authority, said:
“With the rapid growth of Dubai as a global commercial hub and tourism destination, increasing population, more job opportunities and continuous interest of foreign investors, demand is there and is continuously growing.”
There were suggestions for developers to adapt more to market needs by extending payment plans and providing more affordable housing, as well as for the government to provide more incentives to investors both locally and internationally, banks to ease up policies and investment promotion authorities to help attract international investment in the real estate sector.
Bin Ghalaita assured that the Dubai real estate market is in a healthy position and ideal for real estate investments.
Sultan Butti bin Mejren, director-general of DLD, said: “This forum was a good platform for knowledge sharing, exchange of views and in-depth discussion on concerns facing real estate developers, sellers and buyers. We hope this is the first of several events to be held regularly to facilitate more understanding and cooperation among the real estate community in order to upgrade the property sector and attract investors and developers in Dubai.”
