‘Worst is over’ for Dubai realty as buyers return

singapore — Dubai’s property market is bottoming out as buyers return to the market and the emirate offers an alternative to investors worried about the UK’s Brexit vote, according to Nakheel Chairman Ali Rashid Lootah.

“I think the worst is over,” he said in an interview in Singapore. “Dubai is growing, we are seeing signs of more inquiries — serious inquiries — and I think that’s a sign of recovery. The market is maturing, we are seeing more serious, cautious investors, not speculators.”

Lootah is visiting Singapore to market Nakheel’s Palm 360 and Palm Tower projects to overseas investors. About half of the 504 apartments in the 52-storey hotel and residential Palm Tower have been sold since they went on sale two years ago. The building’s first 18 floors will be a luxury hotel operated under the St Regis brand.

Nakheel’s largest share of buyers are from the Gulf Cooperation Council countries that include Saudi Arabia, Kuwait and Qatar. The next largest group is Indians followed by the British. Investors looking for alternatives to UK property following the nation’s referendum to exit the European Union may consider Dubai, Lootah said.

“Brexit could be a positive thing,” Lootah said. “People looking

Dubai is growing, we are seeing signs of more inquiries — serious inquiries — and I think that’s a sign of recovery Ali Rashid Lootah, Chairman of Nakheel

for the best return on their investment will have to pick and choose and may look for other opportunities. Because of Dubai and UAE relations with UK, we are an obvious alternative.”

Since Dubai’s 2008 property collapse forced Nakheel to restructure debt, the company has rebounded from losses by boosting recurring revenue from hotels and retail outlets as well as developments on its Palm Jumeirah island and other projects. The developer reached the goals in its business plan two years ahead of schedule and became debt-free in August, he said.