Dubai's real estate sector defies expectation
Despite expectation for market slump of 20% of the first half of the year, Al Ruwad Real Estate Consultants reported an average annual rise of 2.5% since the start of 2015.
Al Ruwad Real Estate Consultants, a UAE-based consultancy, have announced an average annual rise of 2.5% in the first half of 2015 for Dubai's market.
Ismail Al Hammadi, founder and CEO of Al Ruwad Real Estate Consultants, drew attention to the fact that Dubai’s real estate sector displayed notable success despite global expectations of a downfall of 20% in the beginning of the year.
Al Hammadi went on to elaborate that according to the Land and Property Department in Dubai, the volume of real estate sales exceeded $35bn (AED 129bn) during the first six months of the year. Furthermore, roughly 20,000 investors from across 142 nationalities committed nearly $1.4bn (AED 53bn) during the same period.
Previous negative speculation were concerned of aggressive global and economic changes, which on the one hand accelerated oil prices impacting on the state. There were also concerns that investors would opt to sell properties to take advantage of changes to exchange rate to achieve higher returns.
"What was happening on ground in Dubai is frankly quite different and very strange. Since we saw that in spite of the rate of residential property prices decrease at first, it then rose to 3% in the second quarter of the year. This is more than the annual growth rate of 2014 which was 2.5,” explains Al Hammadi.
He added: “Several huge projects, that have seen the light of day, enabled for more flexible options in terms of prices yet preserving the reputation of Dubai in terms of elegance and status. Some of such projects have fully been sold after less than a day of their launch, with easy settlement options of 1% interest over seven years.”