Demand for homes in Dubai will outstrip supply until 2020 and beyond given the projected population growth of 6-7 per cent per year, said a senior Nakheel official.

Discounting some analysts’ gloomy predictions on Dubai property market, Manal Shaheen, director of sales, marketing and customer service at Nakheel, said: 'Demand for Nakheel’s Dubai properties continues to rise across residential and commercial sectors, and we see no signs of this demand abating. This year’s sales have even been immune to the usual summer dip in July and August, which indicates just how healthy the market is.'

Nakheel, a Dubai World company and one of the world’s largest real estate developers, said its 2008 sales are already showing a three-fold increase on 2007 full-year figures.

In the year to date, more than 6,100 Nakheel units have been sold (97 per cent) or reserved (3 per cent), exceeding the developer’s own ambitious targets, said a statement.

Unit sales in 2008 comprised more than two thirds apartment sales (68 per cent), over a quarter villa sales (27 per cent) and five per cent land plot sales. These units were released in 13 staggered launches between January 1 and August 31. A further 2,650 units are set to be released in 11 additional sales launches scheduled for the final quarter of 2008, it said.

The three Nakheel developments accounting for the largest volume of sales were Badrah Manara apartments, with almost a third of sales by volume (32.2 per cent); apartments in Lake District, with 15.2 per cent of the total; and Al Furjan villas, making up 14.7 per cent of sales by volume.  

Manal Shaheen, director of sales, marketing and customer service at Nakheel, said: 'We are delighted but by no means surprised by this year’s phenomenal sales success. 

“If you compare the expansive vision of Dubai to the construction capacity constraint, which is currently around 80,000 dwellings per year, and if you believe that population growth will continue to rise by 6-7 per cent per annum - a conservative estimate, then by 2020 we will still not have enough residences to meet demand - even with the staggering amount of homes that Nakheel is delivering over the next two decades,” he said.

Nakheel is providing 50 per cent of Dubai’s residential supply by building homes for three million people ranging from affordable housing to the ultimate in luxury living in order to meet the demands of Dubai’s growing cosmopolitan population. Nakheel has developed a large volume of affordable and family living in three distinct areas of Dubai: Waterfront, International City and Al Furjan. The developer also plans to create 10 million sq ft of retail space through plans announced by Nakheel Retail.

Shaheen added: “Through bold decisions made by our leaders, Dubai has established ‘first mover’ advantage in the region, with clear property laws and legislation for the protection of the consumer. Homebuyers, including overseas investors, can buy property freehold, safe in the knowledge that legal watchdogs such as Rera exist to protect their best interests. This protection has a vital role to play in the long-term success and stability of Dubai’s real estate sector.”  - TradeArabia News Service