Dubai developers showcase properties in London
London - Anumber of Dubai’s major property developers participated in the recent Dubai Property Show, showcasing the entire spectrum of property options on offer — from the affordable to the super luxurious.
“Our participation in this important exhibition through our main sponsorship stems out of our continued efforts to benefit from all existing opportunities to promote our real estate market globally,” said Majida Ali Rashid, assistant director general and head of Real Estate Investment Management and Promotion Centre.
“We strive to do this, as we believe that property in Dubai has a certain appeal that is appreciated by various categories of investors around the world,” he said.
The event brought together some of the industry’s top players, including Binghatti Developers, Pan Global Development LLC and industry heavyweight Dubai Properties Group.
Dubai Properties displayed some of its hotter projects including Dubailand’s Arabella 2 and the ultra-luxurious 1/JBR development, a tower in the heart of the popular Jumeirah Beach. That project is scheduled for completion in 2019 and generated a great deal of interest during the London expo, Dubai Properties Chief Operating Officer Masood al-Awar said.
“Dubai is an investment arena for multinationals. In 2015, British people amounted to 7% of the overall investment in property in the Dubai market, so we felt it was very feasible to come and present these three projects that we have that are very sought after,” Awar said.
The United Kingdom is an important market for Dubai. In terms of tourism and business travellers, the emirate sees a 10% increase on an annual basis from Britain, with 1 million visitors expected for 2016, according to statistics released from Dubai’s Department of Tourism and Commerce Marketing.
British investors were second in foreign investment in 2015.
The Dubai property market has been a source of much speculation within the industry, and with the Gulf Cooperation Council region going through economic reform, fears that initiatives such as the introduction of a value-added tax and other taxes might affect the investment climate.
However, Awar said, although the property market was expected to move in a slower pace for 2016, the truth on the ground has proved otherwise.
“Yes, the dirham is pegged to the dollar, so that has an effect on other investments; however, developers changed their payment plan strategy to ensure that the investment viability will be looked after,” he said.
“Furthermore, there was a new dimension of products that were launched to make sure people would still be able to invest. So more towards the affordable, more towards protecting the yield and the Dubai Land Department made it mandatory for every developer that launches a project to think about the affordability side of it because it’s a part of a growing population and business and the sustaining of the real estate development cycle.”
According to Dubai Land Department data, British investors put $2.7 billion into Dubai’s real estate sector in 2015, becoming the second biggest international investor just behind India. From 2008-15, total British investments into Dubai’s realty market amounted to more than $15 billion. In the last three years, investments almost doubled.
Awar said he is optimistic regarding the future of Dubai’s real estate industry.
“Based on my experience whatever people have predicted Dubai has been able to achieve one step above and we are going towards sustainability and further growth.” he said.
“There is nothing that Dubai can’t achieve as long as the government is fully supporting the most important aspect and that’s called the customer, and if you take care of your customers, you don’t have to worry about competitors.”