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Desert Dream bullish on Dubai property market

DUBAI- Desert Dream Real Estate and Investment has four more development projects in Dubai to be announced soon as it launches tonight a Dh1.7-billion residential tower, proof that it is bullish about the property market here despite reports of a slowdown in the coming two years.

People keep on coming to Dubai and falling in love with the city,' said the company's chairman, Mahmood Khan, on Tuesday and stressed that too much regulation of the property market might drive investors away. He added that the market is all right for as long as investors are willing to pay for real estate.

The new project, Dream Harbour, brought to Dh2.4 billion the company's total portfolio in Dubai, he said. The 48-storey tower will be constructed during the next three years from October at the Waterfront, an international community being built on the western shores of Dubai for an estimated 1.5 million people and is twice the size of Hong Kong.

Khan said the company has plans to start investing next year in other Gulf countries, particularly Qatar and Bahrain, and in more emerging markets, after it consolidates its operations across the UAE, particularly Dubai.

Desert Dream has two ongoing projects in the emirate, namely Dream Bay and Dream Square, while the four other projects in the pipeline consisting of one commercial and three residential buildings are still in the design stage. Dream Bay is a 32-storey commercial tower at Business Bay while Dream Square is another project located at the International City.

While Khan is not concerned about investors 'flipping' properties, or selling the units they bought in less than a year to take advantage of the rising prices, he said that Desert Dream buyers could have a good return on investment at least after two years.

He added that long-term investors who do not want to live in their new units could rent these out and have a good income, considering that tens of thousands of migrant employees settle in Dubai every year.

Industry analysts have proposed that the government regulate the market further to stabilise property prices and help bring down inflation. They suggested a ban in selling newly bought properties within a year and an increase in down payment to 20 per cent from 10 per cent.

'But investors can earn from rents,' Khan said, stressing that there is no need to require buyers to prove their capacity to pay the balance because they have an asset that earns every month.

Property prices in Dubai surged 800 per cent since 2002, when foreigners were first allowed to own properties in selected areas.

jose@khaleejtimes.com