Dubai real estate 'will be under stress'
Dubai, January 12, 2010
The Dubai real estate industry will continue to be stressed in 2010 and the emirate's economy will be reliant upon other forms of revenue generating activities as its economic model is re-configured in response to the new realities, said a new study.
With a population that has declined significantly, anywhere between 5 and 8 per cent, population growth in Dubai will be the primary factor to stimulate the economy and rebooting the real estate industry again, said Harbor Real Estate, an integrated real estate service provider in Dubai, in its latest edition of 'The Harbor Report.'
The Harbor report also covers other elements considered vital such as the race for global capital, the issue of oversupply, the impact of mergers, rationalisations, consolidations, the role of Rera, creation of new relationships and the massive shift in market power.
The report dives into the 'New Reality' and 2010 gist of the real estate sector in the emirate. The 'New Reality' examines various critical factors related to the Dubai economic recovery including the rejuvenation of the “Brand Dubai” and how Dubai is positioned, packaged and marketed to the world at large as a place to do business, inhabit or visit.
Rapid population growth in Dubai will be the key to economic prosperity and will be determined by the success of growth strategies set by the government in the commercial, trade, tourism sectors, it added.
Tourism is considered vital as investing in projects and programs that provide an experience of superior vale to international travellers will be one essential element for the recovery, the report said.
“Putting 2009 behind us will not be easy yet its imperative to put the year into context. The 2009 recession has taught governments, business institutions and individuals around the world valuable lessons. These lessons should provide a new depth of knowledge, experience and wisdom as we all look forward to the next decade” remarked Mohanad Alwadiya, MD of Harbor Real Estate and editor in chief of the Harbor Report.
“Yet 2020 is still 10 years away and what we need to focus on now is the immediate future and what we call at Harbor ”The New Reality,” he pointed out.
UAE GDP is also envisaged in the report to grow around 3 per cent as infrastructural spending will continue to drive the economy funded by an oil price which will annualise at a price between $75 and $85 pbl, he added.
In addition, the report announces the new partnership between Harbor Real Estate and Prestige and discusses Strata Law and the ongoing issue of service charges.-TradeArabia News Service