Real estate developers in Dubai have refuted claims of an oversupply in the property market, asserting that demand for new properties remains robust. Developers and industry executives maintain that the steady increase in residential property prices is evidence that the market is not oversupplied. Issa Abdul Rahman, CEO of Kasco Developments, emphasized that property prices in Dubai are rising and the boom is expected to continue despite some challenges. He compared Dubai's real estate market to major global cities like Hong Kong, London, New York, and Singapore, noting that prices in Dubai are still relatively lower. Rahman questioned the logic of rising prices if there were indeed an oversupply.

Firas Al Msaddi, CEO of fäm Properties, highlighted that the market is experiencing sustainable demand despite high supply levels and record transaction volumes. Prices in various areas of Dubai, including Palm Jebel Ali, Business Bay, Downtown, and Dubai Marina, have reached all-time highs. Villas and townhouses have seen a 75 percent surge in average property prices, with apartments not far behind at 55 percent year-on-year, according to the Allsopp & Allsopp Market Snapshot for October 2024. The Dubai Land Department reported that sales transactions exceeded 20,460 units in October, marking an 82 percent increase year-on-year.

Lewis Allsopp, chairman of Allsopp & Allsopp, noted that while the surge may seem unsustainable, it presents a significant opportunity in Dubai's property market. He advised that the key to benefiting from the market is to stay invested for the long term. Abdul Rahman added that property prices in Business Bay increased by nearly 20 percent this year, with Al Jadaf experiencing even more dramatic price rises of 40 percent. He also mentioned that numerous projects are being launched at Dubai Islands, and Kasco Development is exploring opportunities in Palm Jebel Ali.

Kasco Development is investing Dh1.2 billion in three projects, one in Business Bay and two in Al Jadaf. Abdul Rahman observed that buyers from European countries are increasing, driven by uncertainty in Europe and the appeal of Dubai's safety, stability, and legal frameworks. Investors are primarily coming from France and the UK.

Source link:   https://www.khaleejtimes.com