Moving back on top again

As we come to the end of Ramadan and enjoy the Eid break, it is nice to enter the second part of the year hearing some good news.

And the news is this: it appears from all sides that the country’s economy is well on the way to full recovery and the future is looking decidedly bright.

Right now, there is a whopping $4.2 trillion (Dh15.4 trillion) worth of ongoing construction projects in the Mena region, with the UAE taking the biggest slice of that at $698billion (Dh2.65 trillion). The majority of developers in Dubai have restructured and worked on their debt burdens, which means they are now in a better position to move ahead and start building for the future again.

Plus, international companies clearly see the UAE as a safe bet as they are choosing the country to set up shop. For example, global food giant Nestle has announced plans to construct a factory in Dubai, with an initial investment of $136million (Dh500million). The facility will be built on a 175,000 square metre plot at the Dubai World Central site and will be used to manufacture food and coffee products.

Local players are investing again too with Dubai-based developer Nakheel, announcing the signing of a $7.5million (Dh27.5million) deal for the construction of a new mall — The Jumeirah Park Community Centre — which will be spread across 10,600 square metres.

These projects give a clear indication that construction works have begun to gather momentum once again and that the worst days are well and truly behind us.

Indeed, land transactions in Dubai have increased by 21 per cent year-on-year, making a total of Dh63 billion during first half of 2012, as investors look to capitalise on some great offers.

For our sector, all of this good news is furthered by statements from the Dubai Land Department (DLD) saying that the real estate market in Dubai has shown high levels of flexibility in meeting investor requirements and that their reports indicate strong performance and growth in the property sector.

Prices have grown over the past couple of months owing to a high demand for villas, flats and land. During the first half of the year, a total of 14,652 sales transactions worth Dh30.8 billion were registered in Dubai, constituting 49 per cent of total transactions.

Plus, a report by independent global property consultancy Knight Frank, which tracks the top five per cent of mainstream housing markets, shows that Dubai’s market is continuing to see an upturn in real estate valuations in the luxury sector. According to the report, Dubai remains in the top performing 15 cities worldwide and number one in the Middle East throughout the second quarter of 2012 with buoyant Asian markets and resurgence in the main European capitals providing a stimulus for growth.

You don’t have to work in the real estate industry or be a financial genius to know that all these figures add up to one clear result — the UAE is back on the up.

The writer is the managing 
director at property portal 
www.propertyfinder.ae. The views expressed are his own and do not reflect the newspaper’s policy