By Parag Deulgaonkar
Real estate market is stable and will never crash, says Hussain Sajwani
Damac Properties chairman Hussain Sajwani on Sunday said Dubai’s property market will pass through more “mild price cycles”, but will not “crash”.
In a short Youtube clip, the founder of one of Dubai’s largest development firm said the real estate market is stable and offers growth opportunities.
“The nature of the property market is cyclical and we have seen few cycles in Dubai and we are probably going to see couple of more but i think that the cycles going forward will be more ‘mild’.
“I don’t think we are going to see crashes but we may see correction. When i don't know… but at this time i think the market is stable and we have a good growth of going forward.”
In March, Sajwani said the real estate market has stabilised compared to the last few months of 2016 with medium- to long-term outlook remaining positive.
Meanwhile, Global Property Guide, a website that tracks property prices around the world, in its first quarter 2017 report, said the pace of prices in Dubai’s residential housing market is slowing down year-on-year.
Prices fell by 3.69 percent in the first quarter 2017 compared to 9.26 percent a year earlier. It, however, said Dubai’s property market has been one of the world's most volatile, witnessing the “worst housing crashes from third quarter 2008 to third quarter 2011 with house prices plunging by 53 percent”.
The market started to recover in 2012, with double-digit house price increases from second quarter 2012 to fourth quarter 2014. It again slowed in the second half of 2014, amidst housing oversupply, subdued demand and slower economic activity.
Propertyfinder, in its report, also said the real estate sector in Dubai is bottoming out, ruling out further price declines.
The value of real estate transactions jumped 45 percent to $20.96 billion (AED77bn) in the first quarter 2017, according to the Dubai Land Department.