Friday, August 12, 2011

Dubai real estate market picking up slowly, but steadily

The Dubai real estate market hit the bottom early this year. From here, things can only get better, and the market is already picking up. The rates and sales are increasing slowly, but steadily, said Ziad Al Chaar, Managing Director of Damac Properties.

Speaking during an interview to the Gulf News, he mentioned that the fundamentals of Dubai real estate market continue to remain strong even after the financial crisis. Given, the advanced infrastructure, coupled with good connectivity through world-class airport and a global airline, apart from the launch of Metro, such conveniences cannot be seen anywhere else in the region.

Moreover, the quality of life in Dubai is good, and will continue to remain so. Further, the property laws are in place now and is among the best in the Middle East. They are transparent, and serve the purpose by protecting investor interest. Even the property registration process is fully automated. All these are some major aspects that draw investors to Dubai, he pointed out.

Damac Properties is one of the leading developers in Dubai, which has been able to withstand the impact of financial crisis easily. Damac has delivered a total of 28 buildings comprising 6,045 units, and toward the year end, it plans to further complete eight buildings with total of 1329 units. It has another 50 buildings that are at various stages of planning across the MENA region.

Revealing the secret behind the strong success of the company, Al Chaar said that Damac hardly relies on banks or external finance. This has helped the company immensely when the financial crisis hit the market. During the crisis period, several of Damac’s projects were already in advanced stage of development. The company decided to continue with these projects, while only those that were yet to hit the ground were postponed. Therefore, the projects were delivered on time.

Further, the company offered alternatives to the clients and asked them to shift to projects that were under construction. This helped customers immensely, and the company was able to fast track several projects.
Further elaborating his views on the Dubai property market, Al Chaar said that the market is continuing to be an attractive one for foreign investors with the implementation of the new Strata Law, favouring homeowners.

Speaking about the property visa law, he said that it will help in boosting the realty market. However, more clarity on the details of the law is awaited, as majority of potential buyers are enquiring about this law, and it seems important for many, he concluded.

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