Dubai’s property market has witnessed a 2.5 per cent growth in the first half of 2015, compared with the international analyst expectations of a 20 per cent decline in the beginning of the year, says a local real estate consultancy.
“The real estate sector in Dubai showed notable success much against the number of international studies which predicted that the real estate sector will see a downfall of 20 per cent in the beginning of the year.
“Instead, it achieved an average annual rise of 2.5 per cent in the first half of the year in 2015,” Ismail Al Hammadi, CEO, Al Ruwad Real Estate Consultants, said.
According to Dubai Land Department, volume of real estate sales crossed Dh129 billion during the first six months of 2015, compared with Dh57.6 billion during the same period last year, with 20,000 investors belonging to 142 nationalities investing Dh53 billion in the first six months.
“What was happening on ground in Dubai is frankly quite different and very strange.
“Since we saw that in spite of the rate of residential property prices decrease at first, it then rose to three per cent in the second quarter of the year.
“This is more than the annual growth rate of 2014 which was 2.5 per cent.”
He added that the market witnessed a wave of sales for developers targeting limited-income families, which resulted in revival of the market and added to the continuing growth equation.
He believes several factors contributed in keeping the liveliness and activeness in the market, which witnessed a “wave of sales” for developers who launched projects targeting the limited-income families.
The CEO said infrastructure projects for the Expo 2020 would create a state of sustainable stability for real estate prices, particularly in light of the launch of ‘Meydan One’
He stressed that the government’s step in the liberalisation of oil prices carries a positive impact on real estate sector, especially now that the diesel prices have been reduced, which promises a steady growth rate in the near and long term future.
