There is now a renewed interest in Dubai’s real estate sector, which experts believe is heading towards the path of sustainable growth. That Dubai’s realty sector is doing well reflects in the Dh.16.2 billion transactions witnessed last month, making September the best month on record in the past eight years.
Saleem Mohammed, a Kochi-based property developer who was part of Dubai’s realty sector for over a decade opined that Dubai’s real estate is much more insulated from major fluctuations compared to earlier days. “That is my reading. I believe the current phase of growth is sustainable, but I expect stability only post-Expo,” he said.
Expo-2020 is expected to attract 25 million visitors from across the world and experts say it will result in a surge in economic activities leading to over 3.5% growth in Dubai’s GDP. Any growth happening in the realty sector is expected to benefit Dubai in a big way since it accounts for 42% of the ongoing projects in the United Arab Emirates (UAE), according to the Dubai Chamber of Commerce and Industry.
It is true that Dubai is now focused on a knowledge-based economy and emerging technology. “But you cannot ignore the real estate sector. It is still the key to the growth of Dubai’s economy, said Nilesh Agarwal, Managing Partner of Pune-based Excellaa Builders which besides participating in Expo-2020 is in the process of setting up an office in Dubai.
Long-term visas and new rules relating to ownership, he said, are helping in the sector’s recovery. These measures, Agarwal said, enhance people’s confidence, who want to live, work, or trade-in Dubai. Excellent, according to him, has also been receiving inquiries from Dubai for its Pune properties. He sees it as a definite sign of recovery and sustainable growth.
“We want to make use of this opportunity and that is why we wanted to be part of Expo-2020 with a dedicated office in Dubai,” Agarwal said. This year till September, the value of real estate transactions was about 24% more than 2020 as a whole, with a total value exceeding Dh100 billion. Mohammed expects this growth to stabilize eventually.
“It is safe to invest in Dubai property because you come to own a property, perhaps for a lesser price and better rentals compared to Mumbai or Delhi, in a world-class city which offers infinite opportunities to grow your business. If my son wants to buy a flat or villa, I would advise him to put the money in there for this very reason,” said Mohammed.
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