Dubai's property market witnesses increased investment

Considering the potential of the sector, investors from different regions of the world are on the lookout for procuring investment properties in Dubai. It is also true that some talks about a property bubble are going on in the market, but such rumours have been ruled out - not only by the property portals like Bayut.com, but also by Sultan Butti Bin Mejren, CEO of Dubai's Land Department, as unveiled in a report sanctioned by Reuters.

Now let me tell you some of the actualities that justify the coming of increased investment in Dubai real estate.

Increased interest of international investors

According to Cluttons,- a real estate consultancy, renewed demand is being witnessed by the real estate sector of Dubai from both overseas and domestic buyers. The outcome of a survey conducted by Cluttons also conveyed that Dubai ranks second in the world as a real estate investment haven.

On the other hand, Gulf Business revealed that Bahrain-based Ravi Pillai Group plans to invest in two development projects in Dubai with USD1.5 billion. Hong Kong-based Chow Tai Fook Endowment Industry Investment Development plans to put USD1.9 billion in two five-star hotels in Dubai.

New launches

Dubai is also witnessing a rise in new launches by various developers. After the resurgence of the property market, some of the stalled projects have been resumed and now that the market is exhibiting booming trajectories, developers are giving vent to new developments.

Emirates247.com has recently put a blaze of publicity on the prominent names that have announced new developments in the emirate of Dubai this year. Since the beginning of 2014, Emaar has launched five new projects. Nakheel, on the other hand, has declared the sale of land in its noteworthy developments.

Moreover, Dubai Investments (a Dubai Financial Market listed company) has recently unearthed its plan to launch projects of worth AED 3.5 billion, in alliance with Orion Real Estate Development.

This year MAG Group launched a mixed-use project of AED 800 million in Healthcare City. The same group, in collaboration with Dubai Healthcare City, plans to develop two hospitals on an area of 260 000 square feet.

Last but not least, Union Properties revealed that it will introduce an upmarket residential project in Motor City. During the first phase of development 78 villas, and during the second phase 74 villas and 58 apartments will be constructed.

Impact of World Expo 2020

Knowing that Dubai has won the bid for hosting the World Expo 2020 event, investors are likely to be of the view that this is the time to sow seeds in the real estate sector. Gulf News projected that the World Expo event, which is the third-largest event after the Olympics and the FIFA World Cup, will boost the economic landscape of Dubai. Based on this, it can be induced that a better economy will also be the catalyst for the growth of the real estate sector of Dubai. This is also one of the major enticements that create an investment impulse among the investors.

The bottom line

In the current situation, it can be clearly observed that the realty market of Dubai is receiving huge sums from both domestic and international investors and the real estate analysts, myself included, expect that this trend to grow.