By Claire Ferris-Lay
UAE businessman says emirate is seen as a safe haven for companies and investors
Real estate prices in Dubai are set to stabilise as investors
look for a safe haven amid the political turmoil in the region, the head of one
the UAE’s largest conglomerates has said.
Dubai, on the brink of a debt default in 2009, has emerged
as a magnet for investors fleeing widespread political unrest across the Middle
“There is a lot of demand [for property] now. Dubai and the
UAE is a safe haven for a lot of people in the region,” Khalaf Al Habtoor,
chairman of Al Habtoor Group, said.
“The inflow cash flow is improving…property is definitely
going to improve,” he added. “Egyptian businessmen they will move their offices
in the UAE and especially to Dubai. Take other [countries] like Syria, Bahrain
definitely they are moving and we can see that already.”
Property prices in the emirate declined more than 60 percent
from their 2008-peak amid a global economic crisis that caused lending to dry
up and speculative demand to decline, Deutsche Bank AG said in February.
Families and businesses from around the region are moving to
Dubai attracted by cheaper property prices, schools and luxury hotels, said Al
“Traffic has increased, purchasing power has increased
tremendously,” he said. “Schools admissions – we own two schools, [that have a
lot of pupils] on the waiting list and we can are trying to open new classes
for them to assist to the maximum.
“Look to the hotels they are at 100 percent occupancy.”
Dubai’s economy is expected to increase by around 4 percent
this year driven by a growth in trade and services, Dubai Department of
Economic Development, said last month.
The UAE’s Minister of Economy said in January that real
estate prices will start to show realistic growth by the end of 2011.
“I believe the worst is over for property. And in my
estimation, at the end of 2011 and beginning of 2012, we will see positive
movement,” Sultan Al Mansouri, told Arabian Business.
“It won’t be a graph like before, but we will see
growth which is gradual and more realistic.”
Long time we did hear some positive press about real estate in Dubai, but the market has been picking up. Dubai is attracting a lot of visitors and investors (again). The turmoil in the region has definitely an impact on the future of Dubai, and today Dubai is ready to easily accommodate new business moving from Bahrain... as both office and living space is available and affordable.
In my opinion, Dubai is one of the best living/working places on earth, with todays prices a real bargain to set up or settle for the future.
I think that movement in the market (ie there will be more transactions) is stabalising though long before prices begin to rise. There is just too much supply coming into the market.
For projects that are finished, it means that a portion of people that are waiting to move into their new units will leave an old one empty.
So, while transactions might pickup, it still means that prices will continue to fall.
This is what i always say from day 1 of the crisis: Dubai - UAE is absolutely INDISPENSABLE!All other options in the entire MEASA region are much lower. There is no substitute to Dubai in the entire MEASA region (25% of the globe). Best infrastructure ever, safest ever, freedom (socially by MEASA standards), salary levels, overall stability., etc... Real estate prices will go up by 10-20% by this summer maximum (if not more). Banks are lending 100%, everything is appealing, interest rate much lower 5.5% (very close to global rates), lifestyle is second to none by MEASA standards. This is by MEASA standards. For Europans and westerners, i say: UAE is still TAX FREE - This is more than enough to bring millions of rich to escape the unfair taxes of the west. I predict a big boom in Dubai all across in the immediate future.
We are setting up a new company in one of the free zones.
At todays prices, it makes much more sense to setup a company in Dubai where both companies and employees can benefit from a number of benefits instead of staying in Europe where regulations, office leasing cost... are much higher/complicated.
There is a good offering in office and living space, different budgets depending on location..., but all within an acceptable distance to city centers, shopping malls, beaches...
Dubai is a working/living paradise
I pray every day for a return to 2008, and I can see that real estate prices are going up and will touch a new peak later this year.
Hundreds of thousands of rich people from across the Middle East are coming to Dubai and that alone will accelerate the new boom.
I would like to take this opportunity to salute the vision of HH Shaikh Mohammad which has made all this possible and made Dubai the best safe haven in the entire world
And here we go - the same rosy glasses saying the same thing they were saying 2 years ago... and what happened? - zilch, nada, squat! no increase in Real Estate values and the Dubai Economy is still and will remain in sad state for a while. Omar and Mounir, you are obviously 1 and the same... when will you give up your old song (that you have been singing since 2008) and surrender to the facts??? It will take a good 10 years for things to come back (and never to the craziness of 2007) at best!!!
It took Hong Kong - a fully established Global Economic Center over 12 years and still not fully recovered and you expect Dubai that has no underlying sustainability to recover that fast?? Who;s gonna come here??? The expats that left without paying their bills and risk going to jail??? I think not!! So who's gonna come to Dubai?? Where are the jobs and this so called boom that you have been ranting about since 2008??? Get real and move on .... Give it up already will you??
@Omar & @Mounir - you are at it again.
Welcome back Omar and Mounir. It is good that we can always trust you to show up in the difficult times.
Of all the things you write for me the most scary part is "I pray every day for a return to 2008" it clearly shows that people have learnt nothing, or maybe the wrong things from the past events.