Dubai’s Real Estate Prices Expected to Rise in “Coming Months”
Growth will be driven by the Emirate’s ‘Landmark’ Project, Khalalaf Al Habtoor said
Property prices in Dubai will increase in the “coming months” despite the current stagnation in the market, businessman Khalaf Al Habtoor predicts.
Prices will increase due to heightened demand for landmark projects in the city, the Al Habtoor Group Chairman said.
“Dubai offers smart long-term investments. We are a forward-thinking nation. Very few places in the world have an investment climate comparable to that of the UAE,” he said.
“We should be confident in our market, because what we offer cannot be matched around the world.
“We have the outstanding infrastructure, amenities, safety, stability, and a strategic location that will guarantee investors long-term returns.”
He also urged the government to set in place precautionary regulations to monitor any violations of investment promotions or marketing practices in the real estate sector.
Earlier this year, the Al Habtoor Group reported that the value of its investments and expansion initiatives in Dubai currently stands at Dhs12.5-B.
The group also stated a revenue increase of nearly 5% in its real estate portfolio for the first nine months of the prior year.
“I strongly believe in the UAE real estate market. Our real estate portfolio is growing significantly with upcoming developments that include the Residence Collection at Al Habtoor City, which will introduce more than 1,400 apartments and penthouses, as well as the villas at the Al Habtoor Polo Resort and Club,” Habtoor said.
“These are very exciting times ahead and we are expected to see the price per square foot increase in the coming months real estate in prime locations in the UAE.”
His comments come as residential property prices continue to drop in Dubai.
Prices fell 1.1% Y-Y in Q-2 of Y 2016, according to ValuStrat’s Price Index.
The firm said its data indicated an early recovery was materialising in some areas, with a possible bottoming-out of property values during the course of the year.
More broadly the firm said prices had been relatively stable over the last 12 months and sentiment was “cautiously optimistic” towards a recovery commencing in 2-H of Y 2016.
By Aarti Nagraj
Paul Ebeling, Editor