As per the latest research, the demand for housing in Dubai will surpass the demand for offices and commercial spaces, a recent research showed. The rising population growth is one of the main factors for such a scenario, the research revealed.
The real estate market in Dubai will be supplied with several new projects that are likely to be completed in the next one year. Special laws and processes will be implemented to minimize unnecessary delays in project deliveries. Therefore, the commercial and office properties will continue to remain under pressure, the report said.
Majority of the new supplies will be in localities such as the Business Bay, Jumeirah Lakes Towers and Dubai Investment Park. In these localities, the businesses are not as fast as in other major locations such as the Dubai Marina, Downtown Dubai and Discovery Gardens.
With the new supply entering the market, people will see that some “life” returns to the market, and these localities will pose a stiff competition in securing good tenancies. The residential sector will see projects being developed with modern infrastructure, community amenities and other amenities required for an emirate living.
According to the Dubai Land Department data, the housing market in Dubai, recorded increased activities during the last quarters of 2011. Particularly in the fourth quarter, the residential sale touched 2,605 in number, marking a 64 percent growth, in comparison to the 1,589 sales recorded during the third quarter of 2011.
Further, last year, the residential market in Dubai showed signs of stability, although the apartment rates fell by 2 percent in the fourth quarter. However, villas continued to remain unaffected. Majority of the areas and prime locations recorded modest growth.