Dubai's property market will grow at a steadier and more stable pace over the next year, offering solid investment opportunities for savvy investors, according to a real estate developer.
"2012 has delivered on our predictions at the start of the year – prices in the Dubai market steadily grew with each quarter outperforming the last. In 2013 buyers will definitely be able to benefit from this capital growth, but will need to be very savvy about where they invest and in which projects in each area," said Ziad Al Chaar, Damac Properties, Managing Director.
Independent reports have put the growth in prices of real estate in Dubai through 2012 at anywhere from seven to 19 per cent, depending on location and the quality of the project.
The serviced apartment sector is likely to witness huge demand due to undersupply. Dubai currently has less than 200 serviced apartment projects compared to nearly 600 hotels.
Damac will be delivering over 4,000 luxury serviced hotel apartments by the end of 2013.
"We have been working towards the launch of our serviced apartment offering and we are very excited to complete Burjside Boulevard in the middle of next year," Chaar says.
The developer expects new areas such as International Media Production Zone, Jumeirah Village and the Emirates/Al Khail Road area will start to grow in valuation in 2013.
"The UAE government has recently approved an Dh44.6 billion deficit-free federal budget. Within that, 12 percent will be spent on water and electricity services, with a major focus on health and education. This is a clear indication that the required infrastructure to allow these areas to grow will be forthcoming and is committed to."
Chaar believes there has been no better time to invest in the Dubai property market in the past four years.
"Dubai will remains one of the most lucrative real estate markets in the world in 2013 due to new regulations, the filtering of the market following the correction and the increases in business and tourism," he adds.