Dubai sales may con­tinue to slide by 1-5% in H1, be­fore sta­bil­is­ing in H2

Financial Mirror (Cyprus) - - FRONT PAGE -

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.

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