A recently published report proves that the UAE property sector is showing more signs of recovery from the impacts of the global financial crisis. According to the report, a total of 40 projects worth AED 131 billion ($36 billion) were launched in 2012 and the first quarter of 2013. The majority of these projects will be completed in 2 to 6 years and will be ready by 2018.
The report has monitored the different variables in the real estate market and has shown a drive towards building a more sustainable and mature market thanks to the support from Dubai authorities, as well as the efforts of the private sector that is keen to keep pace with developments in the city.
The report emphasizes that local governments played a vital role in enhancing the performance of the real estate sector and support the market by supporting the developers or by launching mega projects which have helped in security recovery and resumption of growth.
The report also points out that the major development projects announced in Abu Dhabi, Dubai, Sharjah, Ajman and other Emirates would enhance the UAE’s economy and will contribute in diversifying sources of income.
Abu Dhabi has announced development projects worth AED 66 billion in the next five years, which will drive growth related to infrastructure, which is the basis for sustainable development.
The report stressed that the real estate sector companies are looking for the potential opportunities in the mega projects to ensure that there is an ongoing activity and stability in development. 90% of the real estate projects covered in the report were launched in Dubai while other emirates controlled 10% of the rest. Dubai has announced three projects this year so far including Blue Waters (AED 6 billion), Palm Mall and The point (AED 3.3 billion).
The report pointed to the dramatic changes in the real estate developments as the focus now goes to building complete cities, while the recreation and tourism projects evolved remarkably in 2013. Most of the recently launched projects are based on sustainability concepts as the UAE sees sustainability as strategic approach to be a world leader in green economy and the knowledge based economy. The report stressed that the quality of new projects reflect the new trend among developers who are more keen to implement standards of sustainability and green building in order to make profits and reduce costs. Audit reports indicate that buildings consumption of energy can be reduced by 20% through good design and the use of sustainable materials.
Arab and Foreign investors injected AED 58.6 billion in Dubai Property Sector in 2012, which strongly signals the recovery of the property sector and increasing growth. Total property transactions in Dubai hit AED 43 billion, a growth of 60% compared to the same period in 2012. The UAE investors maintained their leading position in transactions especially in terms of the sale and purchase of land.