Shrugging off concerns about oversupply, Dubai’s top real estate developers sounded bullish about the sector’s outlook for 2018. As Expo 2020 nears, demand and prices are projected to rise, with investors flocking to cash in on the higher yields that Dubai offers.
“As we get closer to Expo 2020, it will create more jobs and more people will come in for investment. In addition to Dubai being a safe haven in the region, it is always a magnet for investments. We’ll see improvement next year in terms of demand and prices,” said Muhammad Binghatti, CEO of Binghatti Developers.
“It is always encouraging when supply comes from big developers such as Emaar, Dubai Properties and Nakheel as it reflects the trend and direction of the market,” he added.
Oversupply no concern
Rejecting any concerns about oversupply, Binghatti said when the right developer brings a right product into the market, there is no need to be concerned.
“It is no secret that there is huge cash in the market, but investors are waiting for the right opportunity. With many real estate funds coming to invest in Dubai, in addition to individual investors, there is going to be a lot of movement in the market. Dubai provides yields between eight to 12 per cent, which you can hardly find anywhere else in the world.”
Higher returns than London
“Dubai is one of the best markets in the world in terms of returns. In London, property offers around three to four per cent returns; in India, it’s 2.5 to three per cent returns on rental,” said Sandeep Jaiswal, deputy CEO, sales and marketing, Azizi Developments.
In Dubai, you are guaranteed to get minimum seven to eight per cent yields. If you’re selling at the right location, it can even go up to 10 to 12 per cent,” added Jaiswal.
Azizi Developments aims to deliver more than 1,000 units in 2017 and at least 1,500 units for the next year.