The emirate of Dubai, by virtue of being less generously endowed with hydrocarbons than its regional neighbours, has worked hard over the past several decades to develop a wider, more diversified economic bedrock to power growth. As a result the emirate has several sectors whose growth is not wholly contingent on hydrocarbons revenues, and which continue to prosper in the current environment.
A growing oversupply in some segments of Dubai’s residential real estate sector is encouraging developers to reposition their offering towards mid-range buyers, as the market witnesses broader price adjustments.
During the last real estate boom in 2006, Dubai was home to 30,000 cranes, 24% of the world’s total. Although many of these came to a halt as the local economy was hit by the global financial crisis, the city looks set to reclaim its title as the crane capital of the world, according to Simon Gray, the managing director of Chesterton MENA.
Although Dubai’s residential real estate market is dominated by cash buyers, mortgage transactions are on the rise amidst increasing demand. Between 2006 and 2014, mortgage volumes tripled, while in the 18 months leading up to March 2014, mortgages went up as a share of total real estate transactions, from 15% to 28%. By May 2014 mortgages accounted for 32% of total...
As Dubai prepares to stage the World Expo in 2020, the focus of development is shifting from the central axis and moving to secondary locations in the south and east. The Dubai Municipality’s medium-growth scenario forecasts a population of 2.8m by 2020, while city planners are aiming to accommodate 3.4m in time for the Expo. Consequently, another 25,000 ha of land will...
The bursting of Dubai’s property bubble in 2009 led to a more cautious attitude towards the real estate sector. A number of regulations were put in place to discourage the flipping of residential units and confidence in property as an asset class has been restored, with prices rapidly moving towards the levels achieved prior to the global financial crisis in 2008....
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