|By TAP Staff| The sale of residential properties in Dubai may continue to slide by one to five percent in the first half of this year, according to a report for Deloitte Financial Advisory. But the report forecasts a pickup in the second part of the year.
It added that super prime malls will experience further growth in tourist numbers whilst residents will drive demand for convenience retail and non-mall retail concepts.
“The report projects that sales of residential units in Dubai may continue to slide by 1% to 5% in H1 2015, before stabilizing in the second half of the year. We are aiming to grow our portfolio to AED 500 million by end of 2015 and we are confident of achieving this target,” Hafeez Abdullah, Chairman of ‘The H Holding Enterprise’ said.
For many new comers, the real-estate industry has been giving excellent returns, according to Abdullah. Dubai’s property market has experienced another year of change, with a leveling off in capital growth, in certain areas, towards the end of the calendar year, said the report.
“Dubai is engaged in upgrading the city’s infrastructure ahead of Expo 2020, which promises to be the best in the history of the Expo. This is being done through infrastructure spending and encouraging foreign investments in various sectors, which will provide market support over the next five years,” said Abdullah.
“The property is yielding the highest returns. We are satisfied with the current scenario in the construction market in Dubai. We have established businesses in various property-related segments, including facilities management.”
“Deloitte experts believe that residential transactions have slowed to more sustainable levels, reflecting a longer term trend, and predict this level of transactions to continue for the rest of the year,” added Abdullah.
Tourism also plays a key role in shaping the industry, with many big-time developers starting to shift their focus to international tourist footfall. “The world now knows Dubai as a dream vacation destination. This naturally boosts the demand for hospitality and residential units. Experts believe that factors like central location centrally with good access to public transport, ease of car parking, high quality specifications and wide range of amenities trigger high occupancies and attracting pricing,” said Abdullah.