Oil surge and China, India investors to spur rebound in Dubai property

An upturn in oil price and increased flow of investments from China and India are expected to spur a rebound in Dubai's real estate market with the first 15 days of 2017 already recorded deals worth Dh12 billion, developers said.
Latest data released by Dubai Land Department, which shows deals worth Dh6 billion in every five working days, reflects this upbeat outlook for the city's real estate sector.
Analysts estimate that given the upswing in transaction trend so far this year, Dubai could record property deals worth Dh292 billion in 2017, which will be way above last year's Dh259 billion transactions recorded in 2016.
These figures are testimony to the contention that the worst is over for Dubai's real estate market and we are looking at a strong growth ahead, Noorul Asif, chief operating officer of Schon Properties, said.
"With sound regulatory environment that ensures that all stakeholders in the real estate industry play their due role in development, delivery, buying and selling activities - nothing could go wrong - despite challenging external factors," Asif said.

PNC Menon, founder and chairman of Sobha Group, is upbeat about an imminent market upswing despite an overall slowdown in economy in the Middle East and lower oil price as investors and end users from more than 50 countries continue to record their vote of confidence in Dubai.
"Dubai remains the most sought-after property destination for investors as it offers one of the world's most attractive returns on their investments."
It also has its irresistible appeal as a city offering safe, secure, peaceful and most modern lifestyle environment, Menon said at the launch of 'Hartland Estates - Quad Homes,' Sobha's latest offering along the Dubai Water Canal.
He said Dubai has become a hotspot for Chinese property investors while Indian buyers continue to demonstrate their appeal to Dubai properties for their attractive rate of returns and also for the city's enduring charm as one of the best places to live and do business.
Nakheel chairman Ali Rashid Lootah recently said Dubai's property market was bottoming out as buyers return to the market.
"The emirate offers an alternative to investors worried about the UK's Brexit vote," Lootah said.
With a large number of properties due for deliveries, there could not have been a better time to invest in Dubai's real estate market, said Asif. "While new deliveries could put additional pressure on price per square feet, the new investments could accelerate the demand and push up prices. This is the best time to buy properties in Dubai - both in terms of buying for living and investment," he said.
Schon Properties recently launched iSuites - a Dh3.2 billion hospitality project - that will widen the choice for extended family stay. As many as 2,550 iSuites hotel apartments will be developed at the Dubai Investment Park that will be connected to the rest of the urban public transport network through Dubai Metro and is being developed at a site close to Dubai Expo 2020 site, said Asif.
According to the latest real estate market report by JLL, Dubai's residential market is poised to rebound from its cyclical downturn since mid-2014, as oil prices stabilise and real estate projects gain steam in the lead up to the Expo 2020.
There are 31,000 residential units slated for completion in Dubai this year, according to the Chicago-based global real estate consultancy.
The report said Dubai South, an area around the new Al Maktoum International Airport, looks to attract the most activity, with 550 units scheduled for completion in this year and another 10,000 units announced and in the pipeline.
CBRE, a real estate consultancy, said Dubai's residential market is showing early signs of improvement with the sales market expected to recover ahead of the rental segment in 2017.
- issacjohn@khaleejtimes.com

Issac John

issacjohn@khaleejtimes.com