As the UAE remains the region’s most attractive property market, but with some distance to go before it hits bottom, this week’s gathering of new and repackaged developments at Cityscape Global in Dubai serves as a shortlist investment options ahead of a predicted market rebound in the run-up to Expo 2020.
That’s in addition to a variety of international projects, from the UK to Pakistan, aimed at buyers looking for options in other – perhaps more mature – markets. The annual property showcase, now in its 15th year, brings together more than 300 exhibitors from over 30 countries this year, Exhibition Director Tom Rhodes tells GN Focus. The three-day event begins tomorrow and runs until Thursday at the Dubai World Trade Centre and is expected to attract in excess of 40,000 visitors and delegates.
“As Cityscape gears up for its landmark 15th anniversary, it’s important to note it coincides with Dubai getting ready for one of the most important events in its timeline,” he says. “We are excited to welcome Expo 2020 as part of the exhibition this year, working together with Dubai South, the developer of the master plan where the Expo site will be located.”
Rhodes expects several announcements from both UAE and international developers looking to leverage the Expo effect as well as the broader real estate market in line with national development plans.
New launches
Among them is Dubai South, the aerotropolis around Dubai’s new Al Maktoum International Airport, which is launching two key projects from its Residential District at the show, The Pulse and The Villages. Ahmad Al Ansari, Acting CEO of the master developer, said in a media handout that the projects will be available for sale in October.
Investors will however be lining up to look at the Tower at Dubai Creek Harbour, from flagship developer Emaar Properties. The building anchors a six-square-kilometre development by Dubai Creek.
Ahmad Al Matroushi, Managing Director, Emaar Properties says the company would also showcase new projects in Downtown Dubai, Dubai Hills Estate and Arabian Ranches at Cityscape Global. “Through our participation, we reach out not only to investors but also to world-class partners, who work with us on our mega-developments that have transformed the emirate’s property scene.”
So far this year, Dubai added 2,000 new primarily mid-level and affordable apartments and 200 villas and town houses in H1 2016, the realtor Asteco said in a report. Affordable developments include the Siraj Tower at Arjan and 400 units in Dubai Silicon Oasis, the mid-range Ajmal Sarah Tower and Dubai Sports City, Canal Residence West, and at the top end, Palm Jumeirah’s Osaimi Apartments.
Among existing projects, Asteco pointed to substantial interest in the Jumeirah Village area from end users and investors in its recently released half-yearly report. Buyers recognise the potential of the community from a locational point of view in comparison to newer projects launched south of Mohammad Bin Zayed Road, the report said.
International projects
With projects in Turkey, Saudi Arabia and Egypt, Emaar joins several other developers aiming to tap resident expatriate and regional appetites for international properties. Of the overseas markets, prominent pavilions will host projects from the UK, Turkey and Bahrain.
Pakistan makes a new appearance at the show, in line with rising demand in the subcontinental nation. “Pakistan represents a strong investment option, as the sixth-largest country globally in terms of population size and a stabilising political situation, foreign investors are paying attention to the opportunities presented to them by investing in this region,” says Rhodes. “Pakistani nationals ranked 2nd on our list of international visitors in 2015.”
Real estate remains the top investment option for homebuyers from around the region, a survey by global market research company YouGov showed last week. More than half of all respondents (54 per cent) in the Real Estate Barometer study said property was their preferred investment asset class, followed by stocks (13 per cent) and precious metals (11 per cent). Sixty-four per cent identified Dubai as the prime city in which to buy property in the region, possibly because of the strength of the UAE economy, according to YouGov’s Head of Real Estate Research, Lara Al Barazi. The survey polled 1,710 home buyers and investors.
Bottom in sight
Buyers looking at the UAE could do well to wait until the end of the year, however. The broad sentiment is that although the medium-term outlook is strong, prices are likely to continue softening across the emirates, with both Asteco and Knight Frank expecting the market to level out by Christmas.
“We expect to see further marginal declines in values over the next six months as the market looks likely to bottom out by year end with, at most, a 5 per cent decline,” John Stevens, Managing Director, Asteco, said in a media statement. “This could be offset by potential increased transaction volume as lower prices unlock demand and stimulate renewed interest from single-unit buyers for soon-to-be-completed buildings.”
