By Staff writer
Hamad Buamim says growth is more sustainable than previous boom because there is no shortage of housing stock
The head of the Dubai Chamber of Commerce has hailed the current state of the emirate's real estate sector, saying growth is more sustainable than during the previous boom because there is no shortage of housing supply.
Hamad Buamim, president and chief executive of the chamber, said during a wide-ranging interview with Arabian Business that rents and price inflation is being kept in check by sound supply and demand policies.
“The good thing is supply is definitely matching demand,” he said. “We don’t have a shortage like in 2005, 2006 and 2007. We are not worried about it."
He added: "Maybe at the beginning of the year, we talked about concerns over inflation, but these concerns have now been dealt with in a good way. Inflation is three percent, which is also healthy because we are also in a recovery. So we have the right balance.”
Dubai's real estate market saw more subdued price growth during the third quarter of the year, according to the latest report by Jones Lang LaSalle.
Its Q3 2014 Dubai Real Estate Market Overview report said that average rents and sale prices grew by just two percent and one percent respectively in Q3, down from three percent and six percent in Q2.
JLL supported Buamim's view that the emirate's residential sector is now experiencing a "welcomed period of stability".
The stabilisation follows a year of rocketing Dubai rents and house prices which are estimated to have increased broadly by some 30 percent year-on-year.
Middle- and low-income expatriate families have suffered most from rocketing rents, often including Indians and Pakistanis as well as expatriate Arabs and also some families from affluent Western states.
The property market in the city of 2.3 million people rebounded in the last two years after a more than 50 percent plunge in home prices from their peak in the aftermath of the 2008-09 global economic slowdown.
The oil-rich Gulf sheikhdom's reputation as a solid safe haven in a Middle East increasingly torn by political upheaval and civil war has lured tourists and foreign investors alike.