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'Property mart set to witness enormous growth'

DUBAI — The property market in the UAE is set to witness an enormous growth rate during next seven years, touching an estimated Dh230 billion mark in value. This is well above the total value of the real estate market achieved over the last two decades, industry sources say.

According to Dr Mohammed Raheef Hakmi, chairman, Armada Group, this growth will be made possible on the back of several regional and global factors. The chief among these factors will be the sustained uptrend in current international oil prices, which lead to the availability of surplus funds especially with the AGCC governments. These funds are mostly invested in government-sponsored development projects, including infrastructure.

“While banks offer much smaller returns on deposits at present, investors in real estate have reaped far higher benefits, making use of an opportunity to park their funds in this lucrative sector. This is because investors have realised that real estate offers a safe return and sustained appreciation in market value in a place like Dubai and the UAE,” MoneyLine Magazine.com Middle East edition quoted him as saying.

While the most important factor that triggered this growth is the flexibility in local and regional property laws and regulations that allowed foreigners and AGCC nationals to own real estate, a well-developed infrastructure is another factor that facilitates the business environment in Dubai and the UAE.

Also, huge growth in population estimated to hit 2.1 million by 2010 and the increasing number of tourists visiting the UAE will trigger demand in both residential and hospitality sectors, with as many as 45 new five and four-star hotels coming up across the Gulf region in next three years.