Development in the Dubai residential property market can slow to lone digit ranges for the foreseeable future, reported by Hussain Sajwani, the founder and chairman of Damac Properties, among the many UAE’s flagship construtors. Mr Sajwani, mentioned that the time of 20 to 30 percent total annual advances in the Dubai property market were over, and that the “price levelling” experienced by Damac as well as other manufacturers in this last six months might carry on. “The fall during the debacle was dramatic, but so has been the restoration, with 20 to 30 per cent increases in 2012 and 2013,” he said. “To have that level of growth for another season would be a bad thing. At Damac we see it close to single digits for the current year and beyond – from eight and 10 percent.”
Damac’s business has boomed along with the rise in costs, with large undertakings established in Dubai property in the last 12 months. Then again the corporation is unlikely to embark on further “mega-projects” through the subsequent 5 years, until more territory ends up being available. “We generally look for new options, but you’ve have to find the best one. If a further parcel of terrain turns out to be available, we can be interested, but as options stand we have sufficient land at Dubai property sector and funding for an additional 5 years,” he said. “At Akoya, we’ve sold most of the villas and hundreds of apartments. Oxygen development is also marketing well at competitive prices. He explained the downturn in cost increases was due in part to procedures taken by the Dubai federal government and by builders to minimize supposition in off-plan sales of Dubai property, on which Damac’s corporate model is based. “Assumptions has been minimized considerably. Traders are being powered out of the business,” he said.
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October 2019
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