Saturday, August 11, 2007

Demand for housing in Dubai will continue to surpass supply

According to a private property developer, the demand in Dubai realty sector will surpass supply, during the coming two years.

The CEO and President of Omniyat Holdings and Omniyat Properties, Mehdi Amjad, said the demand-supply imbalance in Dubai's real estate market is likely to continue into the next decade, as the sector anticipates continuous inflow of investors from various demographic profile.

Added to this, the population in Dubai is expected to double in the next eight years, and the massive demand for property will continue.

According to Amjad, the Dubai property market is continuously on the look out for new property and is continuing to invest in new launches, despite plenty of buildings being delivered all over Dubai. This was a fact that was proved with the delivery of projects such as the Jumeirah Beach Residence and International City. About 25000 units in Jumeirah Beach Residence alone were absorbed into the market so easily, without even causing any difference to the market demand.

Amjad added that Dubai is targeting population growth, and this will lead to increased demand for real estate. However, though demand will continue to exceed supply, it will not reach extremes as during the past years. The government is doing everything possible to keep pace with the demand by increasing the land availability for developmental works, and by controlling the raw material cost.

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