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Dubai : Strong demand expected for 2014 - Q4 2013

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The Emirate’s successful bid for Expo 2020 is expected to add a 0.5% percentage increase to GDP growth annually till 2019 and 1% in 2020.

The forecasts indicate that the population in Dubai will reach 2.57 million by 2015 which will create more demand for real estate in all sectors.

Dubai current office stock was estimated at over 6.0 million sq m in 2013. It is expected to be 6.30 million sq m by 2014 with few new developments coming to the market.

Occupancy levels in the office sector have increased with greater demand expected in Dubai Wold Central (DWC) where Expo 2020 will be held.

The newly applied mortgage law, capping the loan to value ratio at 80% for UAE nationals and 75% for expats for home loans under AED 5 millions, is expected to bring more strength and stability to the residential market.

Dubai government has introduced a new law, with effect from December 2013, limiting the uplift in rent at review to 20%. This applies to residential, commercial and free zone properties.

Dubai received over 7.9 million tourists between January and September of 2013, a 9.8% Y-o-Y increase, while hotel occupancy averaged at 78.6%, up 3.1% compared to the same period in 2012.

The retail real estate market has seen strong performance due to local demand and a greater influx of tourist groups to the city.

Source : DTZ (Groupe UGL)

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