A new report by Hamptons International, the region’s leading real estate agency, underlines the firming up of Dubai’s real estate (realty) sector with robust enquiries marking the first two months of the year.
This was led by the launch of new developments in some of Dubai’s sought-after communities including Dubai Creek Harbour, the 6 sq km mega-development set by the historic Dubai Creek, and Emaar South, a 7 sq km master-planned community set in the heart of Dubai South, among other new projects announced this year.
“The locations of these two developments – Dubai Creek Harbour, just 10 minutes from the Dubai International Airport – and Emaar South, a part of the new logistics and aviation hub of the city – have been a key factor driving demand,” the report stated.
As its exclusive sales and marketing agent, Hamptons also recorded positive demand to The Residences Jumeirah Dubai, Managed by The Address, a part of The Address Residences Jumeirah Resort and Spa. “The location of this project right in Jumeirah Beach Residences in Dubai Marina, and its appeal as the last available plot of land in this area was a key draw for investors.”
The location advantage of the first prime launches this year is further underpinned by The Tower at Dubai Creek Harbour, the upcoming global icon, which has strong economic impact on the development and adds long-term value to the residences, the Hamptons report noted.
The report also cites the positive traction gained by Dubai’s real est
ate, as reported by the Dubai Land Department. According to DLD, the value of real estate transactions in the first 45 days of 2017 was Dhs42 billion, nearly half of the entire value of transactions in 2016 at Dhs91 billion.
“This is a strong statement on the surging confidence in the real estate sector. The unveiling of the new unified lease form that strengthens transparency in rental transactions is another positive indicator,” according to the Hamptons report.
The new form helps to streamline relationships between all stakeholders involved in real estate transactions and sets clear standards for both tenants and landlords – for tenants, in respect to using the premises for the designated purposes, and for the latter, in relation to timely maintenance and upkeep of the buildings and apartments.
“Such forward-looking moves by the government go a long way in instilling investor confidence and bringing greater transparency – both of which are key to driving the sustainable growth of the real estate sector,” the report noted.
The positive growth in demand for real estate projects in Dubai also draws from the ongoing preparations for Expo 2020 Dubai, according to Hamptons. “There are several infrastructure development projects that are progressing in preparation for the global event. This has contributed to more professionals making a beeline for Dubai to support these works, contributing to increased demand for property – both rental and investment.”
The real estate sector has also gained from the positive swings in oil prices this year, according to the report. “Unlike last year, with OPEC and non-OPEC nations agreeing to production cuts, the market sentiment is largely positive, and there are clear signals of a rebound in the regional economy. The economic and industrial diversification initiatives in the GCC region is creating new job opportunities for youth – which will also feed the real estate sector,” observed Hamptons.
“We have been recording a significant growth in enquiries this year,” said Ranju Kapoor, General Manager of Hamptons International. “This is the result of a number of positive forces pulling together – and bringing an inspiring dynamic to the marketplace.”
“The fundamentals of real estate business continue to be more relevant than before now. Customers are increasingly discerning; they want to be part of established neighbourhoods in superb locations, evaluate the market reputation and delivery credentials of the developers, seek long-term value, and make informed purchase decisions after factoring in all these aspects,” Ranju Kapoor is the General Manager of Hamptons International added.
As a full-service property company, Hamptons has now further strengthened its customer service team, and offers advisory on mortgages with a dedicated team of experts to guide the customers through their entire transaction – be it investing in own property or for renting in prime locations.