Despite the downward pressure from constant supplies in the Dubai real estate market, the Dubai-based master developer, Emaar Properties, is of the opinion that Dubai realty market is now on the 'growth track'.
Speaking to the media, a spokesperson of Emaar, said that the overwhelming investor response received following the launch of 'Panorama' at 'The Views', wherein the entire units were sold on the first day of the launch, it seems that the Dubai property market is on the growth track.
Emaar also saw a good customer response for launch of their townhouses at Arabian Ranches too, which indicates the growing customer confidence in Dubai real estate market.
The once thriving real estate sector had witnessed decline in prices and rentals since late 2008, when the global economic downturn hit the emirate. Analysts are of the opinion that real estate prices will soften further this year, with more supply coming on stream.
Leading real estate consultancy firm, Jones Lang LaSalle (JLL), in its latest market report, said that nearly 24,000 additional residential units are due for delivery during second half of the year 2012. This is after nearly 3000 housing units were added to Dubai market during second quarter of the year, making the total residential stock to 344,000 units.
According to an analyst at JLL, Craig Plumb, Dubai is on growth track, with some parts growing like in prime areas, but, may be too early to say that the whole market is growing, but, some parts in prime localities are growing. To what extent this growth is sustainable, will depend on the ongoing supply, he said.
While Emaar is established in building high-profile communities like the Downtown Dubai, the not so established communities such as the Dubai Sports City are still witnessing decline in sales and rentals, and this trend will continue during the year, the CBRE analyst, Mathew Green, pointed out.