2013 has been a defining year for Dubai and the UAE. As 2012 saw the resurgence in the economy, led by the turnaround of the real estate market, 2013 will be remembered for growth and stability. Increased regulation and the visionary leadership of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, vice president and prime minister of the UAE and Ruler of Dubai, has created an environment to attract international investment and long-term security.
The year of course ended with the announcement that Dubai will be the first city in the Middle East to ever host the World Expo. The jubilation and excitement was followed by questions of unsustainable growth in the property market over the next seven years and who will fill the units coming online. However, the numbers, predications and logical foresight tells a different story.
According to the latest figures from real estate consultants, Jones Lang LaSalle, the current stock of units in Dubai stands at 364,000. The company also reports that 45,000 units are under development, which will be completed and handed over by the end of 2015. So, based on these predications, Dubai’s housing stock will grow by 12.4 percent over the next two years. Dubai Statistics Centre predicts that Dubai’s population will grow from 2,209,287 (at the time of writing) to 2,426,298 by the end of 2015. That is a growth of 9.8 percent and does not factor in the boost from Expo 2020 and the influx of local and foreign investment in the coming years.
Current increases in Dubai rental charges in prime locations, which is returning the market to more normal prices expected in a global city, also suggest that the current stock of units is not sufficient to support the current demand. As these new units come online rental prices will stabilise.
Dubai is one of the most stable and secure countries in the region; something which is often overlooked and taken for granted by those living in the emirate, but it is a key factor which encourages international businesses to open their regional offices and makes Dubai an attractive tourist destination.
2013 was also a pivotal year for DAMAC Properties. The launch of AKOYA by DAMAC — a 42 million sq ft golf and lifestyle community, was the largest single development the company has ever launched. The response to the luxury living villas and apartments around the Trump International Golf Course, Dubai has been strong and our customer base has been quick to respond to the unique lifestyle available in this luxury development.
DAMAC Properties has also been at the forefront of luxury branded living concepts, with collaborations announced with luxury global brand, FENDI and Paramount. We have also completed our first serviced hotel apartment project, DAMAC Maison, Dubai Mall Street, and will soon provide bespoke hospitality services to residents in 7,351 serviced hotel apartments by the end of 2017.
2013 ended on a high as we successfully listed on the London Stock Exchange — the first real estate company in Dubai to do so.
Residents, investors and business owners can all anticipate another year of impressive growth in Dubai in 2014, with strong fundamentals supporting a continued expansion which will elevate Dubai as one of the best cities anywhere in the world.
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