There has been news about a slowdown in the real estate market of the UAE and Dubai in particular. However, it would seem that there is still a lot going on in the UAE real estate market and much to cheer about as well. Dubai is to be home to a new tallest tower, Indian nationals are investing staggering amounts and institutions are deploying serious in the sector. Here is what we know.
The Burj Khalifa is the tallest building in the world right now. However, it now seems that there will be one even taller tower; the Dubai Creek Tower. This building will also have an observation deck based on the Hanging Garden of Babylon, a marina, hotels and residential & retail developments as well. The tower will be over 1000 mt tall, according to estimates.
The Creek Tower is to be the centrepiece of the 6 sq km Dubai Creek Development and the Riviera style community will be ready for people to move into by 2019. Apart from being home to 33,500 residents, the development will have a yacht club, three hotels and a promenade.
Recently, there have been reports of a downturn in the Dubai real estate market and that there is more supply than demand for the luxury villas and skyscrapers. Because of the oversupply problem, real estate prices have fallen after 2014 when this sector was booming.
With there being a problem of over-supply, builders are amending expansion plans and laying off workers to cut costs. There has been talk about placing a cap on the supply of real estate projects and units to even out the situation.
Institutional investors are making big investments into the real estate sector. In 2017, just over Dh100 billion was invested into the sector by banks and private companies. There was more investment in residential rather than commercial properties and completed projects attracted more investment than off-plan projects.
Indian investors have ploughed Rs. 16,800 crore into the real estate sector in the first three quarters of the year. Because of the strategic location of Dubai, high rental yields, good appreciation and favourable property acquisition regulations have made this an attractive proposition for people. So while the real estate space may appear to be in the doldrums by some estimates, Dubai remains one of the most favourable options for real estate investment.
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