Dubai real estate sector to grow says report
Dubai, August 6, 2007
Demand for residential properties is set to outstrip supply in Dubai, says a report on the emirate’s real estate sector.
Although supply of residential properties is greater than ever and 175,000 new units will be available by 2010, an estimated 181,000 units will be required by the end of the decade, said the MEED’s Dubai Real Estate Report 2007.
The value of projects either planned or under way in Dubai will total $310 billion over the next decade. Of this, close to $230 billion, equivalent to almost three-quarters of the total, is planned in the property sector, it said.
Construction has grown at an average of 32.7 per cent a year since 2001 and in 2006 accounted for 12.7 per cent of total GDP, up from 7.2 per cent in 2001.
Averaging at 17.9 per cent since 2001, the economy of Dubai has been one of the best performing in the Gulf over the past five years - largely due to property development, said the report.
Real estate and business services have recorded average growth of 25 per cent a year, driven in large part by government-empowered developers, such as Emaar Properties, Dubai Properties and Nakheel, and landmark projects like Downtown Dubai, Business Bay and the Palm Islands trilogy. -TradeArabia News Service