Construction picks up pace in dubai

Photo: Sboyd

According to data released by the Dubai Land Department (DLD), transactions decreased by 50 per cent in May 2014 as compared to the same time in 2013, an indication of the effect of the emirate's cooling measures. But Bayut.com notes that 2014 overall saw "balanced activity" from both investors and developers.

Foreign buyers remain responsible for a major part of the Emirates’ real estate investment, accounting for almost half of last year's transactions (a total of AED 113 billion). Indians led the way (AED 10 billion) followed by Britons (AED 5 billion) and Pakistanis (AED 4.5 million) and, together, GCC nationals (AED 33 billion).

Dubai Marina continues to be the main target for investors, with 11.91% of searches on Bayut.com. In Abu Dhabi, Al-Reem Island is the most-sought after locality with 16.96% of total searches.

Construction, meanwhile, is picking up, as work resumes on previously postponed projects.

"Construction activity is picking up pace again thanks to the revival in real estate developments and infrastructure projects. The recovery in real estate prices, a bounce in bank financing for construction, and the return of off-plan sales in particular have motivated developers to resume the projects that were on hold in both Abu Dhabi and Dubai," says Bayut.com CEO Mr Haider Ali Khan.

"However, there are still concerns that returning speculation, including through off-plan sales, could make Dubai head towards excessive price growth and rapid over-development. The year 2015 will see a balance in supply and demand if the number of new households continues to grow around the recent rates. This would underpin the recent price gains, but suggest more moderate increases."