Jan 03 2012 |
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Dubai's Emaar Sees Growth For 2012 Residential, Comml Real Estate
Tuesday, Jan 03, 2012
(This story was originally published Monday.)
-- Emaar says Dubai property market to continue benefiting from Arab Spring in 2012
-- Emaar says Dubai residential, commercial, retail and hospitality sectors to grow in 2012
By Tahani Karrar-Lewsley
DUBAI (Zawya Dow Jones)--Dubai-based Emaar Properties (EMAAR.DFM) said it expects Dubai's property market to record positive growth in 2012 across all sectors and the company will continue to focus on affordable housing through its Dawahi Development subsidiary in the new year.
"Dubai has effectively restructured its economy, following the challenges of the global financial crisis, and is now steadily consolidating its fundamentals. Following the socio-political changes emerging from the Arab Spring, elsewhere in the Middle East, more businesses are looking to establish their regional headquarters or expand their market presence to the U.A.E. and Dubai. The property sector of the city is poised to benefit from this and record positive growth in 2012, across residential, commercial, retail and hospitality," Emaar said in a statement to Zawya Dow Jones.
Dubai's once thriving real estate sector has seen prices and rents slump since late 2008 when the global economic downturn first took hold. After a 14.9% contraction in Dubai's gross domestic product in 2009, the emirate's economy began to recover in 2010 with growth of 2.3%, data from Jones Lang LaSalle shows. According to the real estate services firm, data for the first half of 2011 has been encouraging and Dubai's economy is expected to record real growth of between 3% and 4% in 2011 as oil prices remain above $100 a barrel.
However, analysts from Rasmala Investment Bank still expect house prices to fall by as much as 15% in the next year as incoming supply remains substantial even despite numerous project cancellations and delays.
Emaar said the key challenge, and opportunity, for 2012 will be the ability of the region to respond to the needs of the youth--good education, career opportunities, a home they can call their own and a secure lifestyle.
" Emaar is addressing this with the launch of our wholly owned subsidiary Dawahi Development, a next-generation developer of value housing projects across the Arab world. Emaar will continue to focus on affordable luxury through 2012 and the future, and Dawahi Development will be our vehicle to address the value housing proposition," Emaar said.
According to Jones Lang LaSalle, Dubai's residential stock totaled 330,000 villas and apartment units in 2011. An extra 47,000 units are expected to be completed in the next five years bringing the total residential stock across Dubai to around 377,000 units--an increase of 14%. The firm anticipates residential prices in Dubai to fall in 2012 by 10% compared with 2011 as 27,000 units come online.
-By Tahani Karrar-Lewsley, Dow Jones Newswires; +9714 446-1692; Tahani.Karrar@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
03-01-12 0354GMT
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