Dubai's property sector will continue to emerge as a more mature market in 2015, with the real demand now coming from end-users and long-term investors, Chairman of Emaar Properties has said.
"The concerted efforts of the Dubai government have helped manage the supply pipeline, and at the current trends of population and tourism growth, demand is set to remain healthy," Mohamed Alabbar wrote in a column published by Arabian Business.
He added there was no reason for panic though there were reports of the market softening as rents and prices stabilize.
"In 2013 we saw the property market heating up again. Demand spiked and the supply stakes broadened. Having learnt our lessons from the past, we did not let the market go berserk."
In October 2014, Alabbar had said that the market had cooled down and was healthy though "property price spikes did scare him."
"In 2013, things went crazy because supply was limited. As a long-term developer, this spike scares me. I am glad that people are saying that 'the market is cooling down', and that is healthy," he had said.
Commending the efforts of the government, Alabbar said the company had introduced a number of measures to curb speculation.
"We cushioned the market and that is what makes the current softening of the market important from a long-term perspective. What we now have is real demand from end-users and long-term investors. With the city drawing renewed growth energy from the Dubai Plan 2021, we are set to mark a new year of stability."
Emaar is now looking for more partnerships and investments to create premium "cities of the future," firmer growth for its retail and leisure business as it aims to achieve 100 million visitor milestone for Dubai Mall.
However, Knight Frank, a UK-based consultancy, predicted in its Prime Global Cities Forecast that prices may decline up to 10 per cent this year.