However, increased government spending and an uptick in oil prices to $83 per barrel (Dh305) this year have buoyed investor sentiment and prompted expectations that prices could start to rise again from 2019. Consultancy JLL said in a report this year that while residential prices in Dubai have fallen by around 20 per cent since the last market peak in October 2014, the market is now approaching the bottom of its cycle, with only limited declines expected over the next year.
Meanwhile, recent changes to UAE visa laws to allow 10-year residency for certain expats is expected to encourage long-term residents to buy property, rather than rent, JLL said.
“I think [the decline in prices] has been overly negatively described,” Mr Al Malik said. He was speaking to The National at the Cityscape Global property exhibition in Dubai this week, where developers showcased a slew of upcoming projects and launched thousands of units for sale.
Dubai Holding is marketing Madinat Jumeirah Living, a new luxury residential development with gated apartment clusters, community retail, parks and swimming pools to be constructed next to the company’s Marsa Al Arab tourism destination near the Burj Al Arab. Madinat Jumeirah Living is scheduled to break ground early next year and be completed within two years.
The company continues to sell phased units at its other residential schemes, where further development continues as buyers and tenants move in, which include One JBR, Villanova, Mudon and others. The majority of buyers are from the UAE, India and the UK, Mr Al Malik said, in line with investment trends across the emirate reported by Dubai Land Department.
Dubai Holding will continue to offer a mix of affordable and luxury products, “as flexibility is key to being competitive as a real estate company,” he said.
Mr Al Malik became acting chief executive of Dubai Properties last month following the resignation of Raed Al Nuaimi who was appointed to the role as part of a management reshuffle in February. Dubai Holding is looking for a permanent replacement, Mr Al Malik said.
Source: The National