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Mazaya Monthly Real Estate Report -
Week 1 - August 2016
Al Mazaya's report further points out that
according to the key indicators showed
by the UAE economy over the past couple
of years, the local economy will be able
to overcome the pressures and keep up
with the reported cutback in government
spending. This will be through entering
into more ambitious projects and
providing more investment opportunities
that would contribute to maintaining good
and safe economic activity for current and
future investments. It is worth mentioning
that the value of projects surrounding the
locationof theExpowill reachaboutAED80
billion. Meanwhile, real estate developers
are speeding up their expansion in Jebel
Ali and neighbouring areas. Infrastructure
projects are progressing as planned.
Moreover, market prices are also
experiencing a remarkable growth.
Recently, rents at nearby places have
seen a marked increase, in-line with the
reported development of the projects
in progress. It should be highlighted
here that Expo 2020 tenders are being
awarded to an elite group of local,
regional and international companies,
including several SMEs – a matter
which reflects the significance of
Expo projects for the operating
companies and their economic sectors.
Besides, efforts are focused on the
cooperation with leading innovators
and thought leaders from around the
world in order to launch and develop
creative and distinct ideas which
would also expand the economic
stimulus at the international level.
Al Mazaya's report adds that the projects
in progress have brought about a rise
in the prices of the surrounding plots of
land, noting that the current price level is
still logical and has not yet reached critical
levels, due to the inability to determine the
volume and number of projects altogether.
This is in addition to the difficulties of
estimating the volume and nature of
demand and the nature of the use of
the projects for the post-event period.
Recent data has indicated that the
exhibition will be able to raise the Gross
Domestic Product (GDP) of the Emirate
of Dubai by at least 2%, which is high
when compared to the period of the
event, and satisfactory as compared
to the volume of investments, while
the risks of those investments will
increase whenever they are linked to
the event itself without continuing to
generate revenues during the post-
event period. What is clear is that the
real estate sector will benefit most from
the projects and activities being carried
out. In this context, it is noteworthy
that developments in global markets
and continuing financial pressures
have had a role in re-prioritising the
projects, with a focus on evaluating
the long-term economic feasibility of
these projects. Thus, the projects in
progress and those on the waiting list
are classified among the most feasible
and efficient projects over the phases
of execution, hosting and beyond.