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Based on several data
There are several variables that play a role in mapping the real estate market's performance for the year of 2017, based on the available data, accumulated over the years of 2015 and 2016, the latter can be taken into consideration as a preliminary stage to restore the market’s hard balance over the next year and retrieve the actual cohesion.
Ismail Al Hammadi, CEO of Al Ruwad Real Estate says that the year 2017 will mark the peak of the peaks of the enterprise market and the real estate sector, as it will be the actual year of the movement of the market's performance in terms of investments in real estate and large value transactions deals, according to the prices’ trend and achievements taking place in the real estate sector during the current year.
The most important variables that will occur in the real estate market in 2017, according to Al Hammadi, are the tendencies striking to accomplish medium real estate projects, that would most probably have a significant impact in improving the market’s performance in the next phase and that would also serve as a great cost-effective solution for the developers who have chosen to invest in this type of undertaking. This trend is set to meet the needs of the middle-class buyers who have become more aware and informed of the reality of the market in light of the current economic and political conditions, compared to previous years. On the other hand, the medium-sized real estate projects are bound to offer competitive prices that will enter the future market and will provide wide options for those investors seeking real estate units at affordable prices, but nonetheless high built quality.
Stability
Al Hammadi believes that the prices decline in the value of residential units by more than 2%, which took place this year in villas and apartments compared to last year’s review, will prolong, while other lineage areas which have been sky rocketing in rent prices such as Dubai Sports and Jumeirah Village Circle where the rent rate went higher with 2 -3%, respectively, according to Asteco report, it is propped to stabilize rents ratio of other regions, which experienced a decline of 5%, according to the same report .
With regards to the demand for retail units and office spaces, Al Hammadi shows that the market’s call will continue to rise and grow at a steady pace over the next year, due to an increasing request of new companies and entrepreneurs to establish their businesses in Dubai. The market’s stable equilibrium, the expansion of free zone areas and the gear up for the Expo 2020, has made Dubai a sole business hub attraction in the region with many opportunities to grasp.
Good Growth Rates
With respect to the hospitality sector and hotel rooms, Al Hammadi believes that the hotel sphere in Dubai and the other emirates in UAE, which accounts for 32% of total hotel rooms under construction in the Middle East, has good growth rates. This growth will continue over the next year and the years to follow supported by the government’s interest in developing the hospitality and tourism areas and everything associated as an alternative option of financial outflow for the economy, as the region is riding a wave of changes taking place in global markets due to the instability in currency exchange and oil prices. The occupancy rate will rise vigorously as a result of the growing influx of visitors and tourists expected to arrive in the Emirates, regardless of the room rates, which might witness few fluctuations, as we approach Expo 2020.
Al Hammadi believes that the real estate market in Dubai during the current year will remain intact in terms of performance and achievement, but will grow in relation to demand at all levels. This may be attributed to several factors, most notably the adoption of real estate sector as a source engine for the local economy, a stable environment, while surrounded by geopolitical unrest plaguing the neighboring districts, in addition to higher investments on infrastructure and increase of financial liquidity with the continuation of economic downturn in other countries, having Expo 2020 as a major catalyst for the market owing to the fact that various associated projects are being developed to receive the event.
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About Al Ruwad Real Estate:
At a time when Dubai is expanding its strength and its position as an ideal center for business and tourism in the region, the real estate market tends to grow and expand more fiercely, backed by the launch of new projects and a higher demand. Though government schemes and tax breaks have helped attract foreign investors, Dubai’s integrated infrastructure is the driving factor in its popularity. Dubai continues to make strides as a tourist destination and an international business hub.
Founded in 2013, Al Ruwad Real Estate has emerged as a national institution active in real estate investment and property management, marketing, construction and contracting area, under the supervision of an integrated team of multicultural young cadres extending creative and versed comprehensive knowledge of the concepts of real estate brokerage in every aspect of the real estate field available in Dubai and its suburbs to cater to the needs of local and foreign customers offering pre and in-depth study of the buildings estimating the approximate age of the property and the technical condition and report an expert valuation according to market standards. Al Ruwad crew is equipped with high negotiation and mediation skills to ensure that sales and purchase transactions are met with success.
Al Ruwad dons a large network of contractors and developers, building owners and other relevant parties, focusing on operating with meticulousness, transparency, reliability, innovation and creative constructive ideas.
© Press Release 2017
