By Staff writer
Ali Rashid Lootah said the developer has received more enquiries, as property sales declined in the emirate
Nakheel chairman Ali Rashid Lootah has signalled the return of 'serious' investors to Dubai’s property market as signs of recovery.
Property sales have declined by almost 30 percent by value in the first seven months of 2016, according to data from the Dubai Land Department.
Real estate analysts have predicted a flat market or a further slowdown in 2017 with Jesse Downs, managing director, Phidar Advisory expecting another 10 percent drop in values after a seven percent slide this year.
“I think the worst is over,” Lootah told Bloomberg.
“Dubai is growing, we are seeing signs of more enquiries - serious enquiries - and I think that’s a sign of recovery. The market is maturing, we are seeing more serious, cautious investors, not speculators.”
The developer was speaking in Singapore where Nakheel is marketing its Palm 360 and Palm Tower projects to overseas investors.
The largest share of buyers for Nakheel come from the GCC countries like Saudi Arabia, Kuwait and Qatar. The next largest group is Indians followed by the British.
Lootah said investors looking for alternatives to UK property following the nation’s referendum to exit the European Union are likely to consider Dubai.
“Brexit could be a positive thing,” he said. “People looking for the best return on their investment will have to pick and choose and may look for other opportunities. Because of Dubai and UAE relations with UK, we are an obvious alternative”
In August this year, the developer announced it had become debt-free after paying off the AED4.4 billion trade creditor sukuk (Islamic bond).
What world are Nakheel living in?? Thought this story was a joke at first. People in Dubai, and rest of UAE, are in fear of the future at present, job losses, school fees increasing, retail spending down .....the list goes on.
On top of that, that there is an oversupply of property in the region, plus overpricing of poor quality product in some instances. The property market still needs to negatively adjust to realistic prices after being over inflated by unscrupulous people looking to make a quick buck off the back of people, flipping properties again and again.
Funny how another article has lines like this
â€œThe many hundreds of buildings built during the real estate boom will be due for major repairs and renovations within the next five to ten years. What happens if there is not enough money in the reserves to complete this work? How will the shortage be covered? How will this affect the property value?â€ she asks.
Nothing absolutely nothing has changed in the mindset of certain people.
Spot on. The glitzy but cheaply built properties that have gone up (probably around 90% of stock) will soon become to inefficient and expensive on maintenance. To all you owners expect significant hikes in your service charges in the next 5 years to pay for new elevators , wear and tear of buildings and refurbishment. I would expect most of the towers in JBR will have less than 20 year lifespan.
My experience as a tenant is that after the 12-18months quality of maintenance went down on most buildings forcing me to move. Even at the time you would find buildings just finished where you would be told that the swimming pool or any other facility was being fixed and would be working again in "2 weeks"...
Regarding JBR, well, what can I say?
Dont't be left holding the bag; a global stock market crash and inflated real estate bubbles the likes of Vancouver, Toronto, Hong Kong, Dubai and London is due to burst.
Owners of apartments are going to face some severe challenges in the coming months / years. When your building is uninsurable because you have no sinking fund to replace the cladding in accordance with the new fire regulations.
This will diminish resale values, affect your mortgage and also probably your rental capacity
Don't say you were not warned.
I concur with the above comments.
I'd also like to add Nakheel's logic in regards to UK nationals using the UK as an alternative for investment due to Brexit is deluded.
This is worrying that some one of this position lacks economic sense. With a falling Pound it is less likely for British nationals to invest abroad as the currency exchange makes them worse off. Therefore they would be paying more for a property in Dubai today then they would pre Brexit. Until the time the pound gets stronger and back to its value pre brexit it becomes less attractive to a British national.
They're living in 'Trump World'.
Glad Dubai is final getting serious buyers, wonder when they will get serious developers??