Middle Eastern developers are reporting high levels of Dubai property transactions, helping prices in exclusive areas such as Dubai Marina to soar.
- Developers speaking at the International Property Show have said that demand for Dubai property investment opportunities is still high
- Large numbers of transactions in off-plan and completed properties have been recorded, with predictions of a price correction in the region dismissed
- Dubai Marina is an area that has performed particularly well, with prices at the end of 2014 higher than during the boom of 2008
Demand for property in Dubai remains high, especially from overseas investors, as high transaction volumes have been recorded for the first few months of 2015, according to a number of leading UAE property developers.
Speaking at the International Property Show, delegates dismissed talk of a price correction in the market, with many speaking positively of the activity they’ve experienced in recent months.
Ziad Al Chaar, Managing Director of Damac Properties, said that his company had sold 2.7 billion AED (£498 million) in off-plan real estate in the first quarter of the year, the same amount sold in the final quarter of 2014, generally considered to be the busiest period in the calendar.
Al Chaar does not believe that there is a price correction going on, with demand for his product still strong, particularly from overseas investors. He said: “We held 50 active interactions in overseas markets trying to get through to buyers. One of our team has just come back talking about potential interest in Dubai from buyers in Shenzhen [China].”
The CEO of Acrohouse Properties, Chandrakant Whabi, revealed that transactions in February this year in his company’s products were estimated at “2.37 billion AED, against January’s 2 billion AED or so”.
In addition, Luke Hexter, Head of International Markets at Luxhabitat, believes that “we are now seeing a shift to end-user clients looking for luxury, good quality homes to live in”, and pointed out that property prices in many exclusive areas had risen to their highest levels for several years. Hexter said that, for example, “Dubai Marina was 4% more expensive on average in [early] 2014” than it was compared to the levels recorded during Dubai’s property boom of 2008.