Thursday 28 March 2024
 
»
 
»
Story

Dubai property sector ... to throw up new challenges for investors.

'New challenges ahead' for Dubai property investors

DUBAI, January 26, 2015

With the cooling of the real estate market since the middle of last year and the rapid fall in oil prices over the last few weeks, it could be interesting times ahead for Dubai's investors, said JLL chief executive officer Alan Robertson.

He was speaking at a panel discussion held on the sidelines of Meed’s Destination Dubai 2020 Conference which opened today (January 26) at The Address Hotel in Dubai, UAE.

The discussion will spotlight trends and prospects in the real estate sector and the impact of masterplan for the World Expo 2020.

Addressing the delegates, Robertson said the investors in Dubai's real estate sector will face new challenges and opportunities in 2015 and beyond.

He was joined by Phidar Advisory managing director Jesse Downs who will brief the conference about analysis Phidar has completed about real estate prospects in Dubai.

“If the oil price stays low, we see an impact in two three years from now because Dubai is not dependent upon oil,” remarked Downs.

“The impact trickles down indirectly from other countries, primarily starting with government spending. It takes a while for this to happen. There is a delayed impact so this is something we can prepare for,” she stated.

According to Downs, the main opportunities in the Dubai market were affordable housing and genuine luxury accommodation.

In Dubai there are only five apartment developments that Phidar classifies as luxury, she pointed out.

“Genuine luxury of course means the building must have a good location with a good view,” stated Downs. "But what defines these five buildings is the quality of the design and lay-out plus the finish. Often, there is a mismatch in materials used and the installation of materials," she added.

Downs called for better data about the Dubai real estate to improve transparency and decrease market risk.

Other key talking points at the summit will include the latest major project developments in Dubai, projections for population growth and service demand in the years to 2020 and the impact on investor sentiment of lower oil prices and the higher value of the dirham against most other currencies.-TradeArabia News Service




Tags: investors | Dubai property |

More Construction & Real Estate Stories

calendarCalendar of Events

Ads