Dubai sales may continue to slide by 1-5% in H1, before stabilising in H2
A recent report for Deloitte Financial Advisory reveals that retail property sales in Dubai will continue to rise in 2015. It added that super prime malls will experience further growth in tourist numbers whilst residents will drive demand for convenience retail and non-mall retail concepts.
“The report projects that sales of residential units in Dubai may continue to slide by 1% to 5% in H1 2015, before stabilising in the second half of the year. We are aiming to grow our portfolio to AED 500 mln ($136 mln) by end of 2015 and we are confident of achieving this target,” said Hafeez Abdullah, Chairman of The H Holding Enterprise.
For many newcomers, the real-estate industry has been giving excellent returns, according to Abdullah. Dubai’s property market has experienced another year of change, with a leveling off in capital growth, in certain areas, towards the end of the calendar year, said the report.
“Dubai is engaged in upgrading the city’s infrastructure ahead of Expo 2020, which promises to be the best in the history of the Expo. This is being done through infrastructure spending and encouraging foreign investments in various sectors, which will provide market support over the next five years,” said Abdullah.
“The property is yielding the highest returns and we are satisfied with the current scenario in the market in Dubai.”
Deloitte experts believe that residential transactions have slowed to more sustainable levels, reflecting a longer term trend, and predict this level of transactions to continue for the rest of the year.
Tourism also plays a key role, with many big-time developers starting to shift their focus to international tourist footfall.
“The world now knows Dubai as a dream vacation destination. This boosts the demand for hospitality and residential units. Factors like central location, access to public transport, ease of parking, high quality specifications and wide range of amenities trigger high occupancies,” said Abdullah.