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, leading executives in the industry said.
Independent reports have put the growth in prices of real estate in Dubai through 2012 at anywhere from 7-19 percent, 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.”
As the year comes to a close, Al Chaar looks ahead to the new year with cautious optimism.
“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. The more transparent the market becomes as it matures, the more trust clients can have in the system and the large companies which have been operating in Dubai for many years,” he said.
He further said “Dubai continues to grow at a phenomenal pace. 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 and buyers should be looking to the medium and long-term when deciding to buy in Dubai.”
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 when infrastructure is complete and the area is thriving. — SG