Confidence in Dubai real estate is returning, expert says

19/12/2012 - Dubai Property News Neil King
Confidence in Dubai real estate is returning, expert says

There is little doubt that Dubai's real estate sector is on a major roll at the moment and investors from all over the world are likely to secure lucrative new assets in the city in 2013.

According to Jones Lang LaSalle, there are "clear signs" that the economy is recovering well, with latest figures released by the Dubai Statistics Centre highlighting gross domestic product growth of 4.1 per cent in the first six months of the year.

In fact, the organisation stated that there have been so many positive announcements of late that one could be forgiven for thinking we had gone back to 2006/2007 when the global economy was booming.

Of course, memories of the economic downturn are still fresh in people's minds and Jones Lang LaSalle feels that investors and building developers will have learned from this difficult period.

Dubai is one of the fastest growing cities on the planet and is home to some of the most outrageous and brilliant structures in the world.

However, chief executive officer of Jones Lang LaSalle's Middle East and North Africa division Alan Robertson thinks developers and investors now need to take a longer-term approach when launching new projects.

"We are definitely seeing a return in confidence to the Dubai real estate market," he remarked.

"This is still Dubai and it's as ambitious as ever but we are also seeing a more mature and considered approach which is only going to benefit the long-term health and credibility of the real estate sector amongst domestic and international investors and stakeholders."

Mr Robertson added that new buildings need to be erected in line with market demand, rather than thrown up all at once.

There is a fair chance that construction companies will be extremely busy in the new year, as the clamour for property investments in Dubai has intensified in recent months.

Indeed, a number of high-profile projects have already received the green light, including the ultra-impressive Mohammad Bin Rashid City, which will house the world's largest shopping mall, as well as a plethora of luxury hotels and entertainment complexes.

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