The CEO of Damac, one of Dubai’s biggest property developers, has said that the real estate sector in the emirate is on track for revival in 2011.
“There is still a lot of cash on the sidelines, but there are opportunity costs to keeping liquid cash,” Damac managing director Ziad El Chaar said.
“Investors will now be weighing up their options about where to invest next year, and property is shaping up to be one of the best performing sectors.”
Damac is planning to deliver eight projects in Dubai during 2011, and has more than 12,000 units under development throughout the MENA region.
The company cited data from Saudi Arabia, Lebanon and Egypt, which suggested that their property sectors would see double digit growth.
“The region is also getting a boost from Qatar’s successful 2022 World Cup bid, with Shuaa Capital predicting Qatar may spend close to $90bn on housing and infrastructure in the lead-up to the tournament,” El Chaar added.
“Damac Properties has several major projects ongoing in Qatar, and the World Cup announcement has certainly reinvigorated Qatar’s real estate market.”
Damac’s plan is to hand over a slew of projects in Abu Dhabi and Dubai, and then begin constructing again for second wave of developments.
The firm has awarded $1bn worth of main contract works in the last 12 months, and has been focusing on diversifying its market footprint outside the UAE.
El Chaar quoted a recent report from Credit Suisse, which suggested that the real estate market in the overall UAE is improving, and should begin to gain traction on the back of improving domestic economic and financial conditions.
Other analysts have said that the Dubai property market will continue to decline next year.
“There is still no parity between supply and demand,” Paul Richard, associate director at Cluttons in Dubai, told Bloomberg. “You’re looking at a good two years for Dubai’s market to reach bottom.”
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