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The current cities which are underway
are in keeping with global trends as far
as the level of designing or the project
designs is concerned; but, the Dubai
real estate product is different in project
design and architectural concepts.
Despite the declining trends in the
region and beyond, the qualities
of foresight and the current level
of diversity will ensure adequate
corrective responses. However, those
smart projects that are targeting the
right groups will emerge unscathed
during market movements of all kinds.
Additionally, the wait and watch
policy of investors and the nature
of the ongoing projects were also
the reasons for this response.
This entails that, keeping the luxury
quotient of the offered product and
the targeted audience in mind, pricing
shouldbedevisedintherealmoffairness
and reasonability under all market
scenarios. It is also seen that recession
does not have the same effect on prime
properties that it has on local ones.
TheAl Mazaya report clearly points out that
therestill areopportunities for investments
in the region but you need to be able to
assess them rationally and harness them
at the opportune time; access to funds
and liquidity will be determining factors
when the markets are favourably inclined.
Since the economic reforms have been
in place for most of the areas, the Al
Mazaya report stresses that extending
diversity to include the real estate sector
would pave the way for ensuring suitable
responses during ups and downs.
The current clarity in the real estate
scene in the UAE is due to the systemic
responses that are built in the system to
sustain and withstand the volatility in the
market; these responses are automatic
irrespective of the cause of the fluctuation.
Targeting the working class i.e. the
middle-income group will provide long-
term demand and stability and will ensure
a steady stream of business whatever
the state of the market. Innovating
on the products and using the right
strategy to suit the market trends will
be the key to meeting the demands
of both investors and the consumer.
In the current scenario, Dubai is striving
to attain the status of one of the smart
destinations in the world; to this end, the
emphasis is on inviting the top investors
andbuilders topool in their efforts andhelp
Dubai in upgrading. A high level of activity
anddemand is forecast for themiddleclass
in the immediately foreseeable future.
Mazaya Monthly Real Estate Report -
Week 3 - December 2015