It may be time to buy in Dubai with the emirate’s population on course to double in a decade.
The upbeat growth prediction from Bank of America Merrill Lynch challenges the widely held belief that overdevelopment during the emirate's boom years would continue to dampen demand for new homes.
“Dubai’s status as a regional financial, transport and logistics hub places it in a position to benefit from growth in neighbouring countries in a self-sustaining fashion,” said Jean-Michel Saliba, the regional economist for the bank.
The report identifies Dubai as one of the best GCC cities in which to develop business. With a current working population of 1.3 million, the emirate aims to create 950,000 new jobs by 2020, with retail, tourism and related sectors fuelling growth.
It estimates that the emirate’s active population should grow by 6.1 per cent on average over the next eight years – outpacing the increase in residential supply, which is predicted to grow by 4.9 per cent over the next two years. That means an incremental housing demand of 317,000 units is possible in Dubai by the end of the decade - or about 94 per cent of total current housing stock.
About 3,000 new units were completed in Dubai in the second quarter of this year, taking total residential stock to 344,000 units, according to Jones Lang LaSalle. Developers expect to deliver an additional 24,000 new homes in the second half of this year.
The delivery of thousands of new villas and apartments sold at the peak of the market in 2008 has dented investor confidence in a property market recovery despite the emergence of positive pricing increases in some locations.
But the rapid growth of traffic through Dubai's airports and a sharp rise in hotel occupancy and the numbers of people shopping points to a more upbeat economic forecast. Dubai hotel guests are expected to rise by 1.6 million to reach six million by 2020. That would require 18,868 new rooms.
Retail space is also expected to achieve growth of 5 per cent until 2020, outpacing the completion of new retail space that is expected to grow by 4.4 per cent.
The bank said Dubai’s bid to diversify its economy had helped it to deliver infrastructure assets faster than its neighbours while also building a non-oil economy more geared towards trade and tourism.
[ SCronin@thenational.ae ]
twitter: Follow and share our breaking business news. Follow us
iPad users can follow our twitterfeed via Flipboard - just search for Ind_Insights on the app.
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
- For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
- If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
- Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
Takreem Awards winners 2021
Corporate Leadership: Carl Bistany (Lebanon)
Cultural Excellence: Hoor Al Qasimi (UAE)
Environmental Development and Sustainability: Bkerzay (Lebanon)
Environmental Development and Sustainability: Raya Ani (Iraq)
Humanitarian and Civic Services: Women’s Programs Association (Lebanon)
Humanitarian and Civic Services: Osamah Al Thini (Libya)
Excellence in Education: World Innovation Summit for Education (WISE) (Qatar)
Outstanding Arab Woman: Balghis Badri (Sudan)
Scientific and Technological Achievement: Mohamed Slim Alouini (KSA)
Young Entrepreneur: Omar Itani (Lebanon)
Lifetime Achievement: Suad Al Amiry (Palestine)
More on animal trafficking
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
MATCH INFO
Wales 1 (Bale 45+3')
Croatia 1 (Vlasic 09')
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
Kanye West
Ye — the rapper formerly known as Kanye West — has seen his net worth fall to $400 million in recent weeks. That’s a precipitous drop from Bloomberg’s estimates of $6.8 billion at the end of 2021.
Ye’s wealth plunged after business partners, including Adidas, severed ties with him on the back of anti-Semitic remarks earlier this year.
West’s present net worth derives from cash, his music, real estate and a stake in former wife Kim Kardashian’s shapewear firm, Skims.
Coal Black Mornings
Brett Anderson
Little Brown Book Group
Company profile
Name: WallyGPT
Started: 2014
Founders: Saeid and Sami Hejazi
Based: Dubai
Sector: FinTech
Investment raised: $7.1 million
Number of staff: 20
Investment stage: Pre-seed round
Omar Yabroudi's factfile
Born: October 20, 1989, Sharjah
Education: Bachelor of Science and Football, Liverpool John Moores University
2010: Accrington Stanley FC, internship
2010-2012: Crystal Palace, performance analyst with U-18 academy
2012-2015: Barnet FC, first-team performance analyst/head of recruitment
2015-2017: Nottingham Forest, head of recruitment
2018-present: Crystal Palace, player recruitment manager
The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
Company name: Farmin
Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
Initial investment: None to date
Partners/Incubators: UAE Space Agency/Krypto Labs
Greatest Royal Rumble match listing
50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
WWE World Heavyweight ChampionshipAJ Styles (champion) v Shinsuke Nakamura
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
United States Championship Jeff Hardy (champion) v Jinder Mahal
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt
Casket match The Undertaker v Rusev
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v Kalisto
Neymar's bio
Total club appearances 411
Total goals scored 241
Appearances for Barca 186
Goals scored for Barca 105
Formula 4 Italian Championship 2023 calendar
April 21-23: Imola
May 5-7: Misano
May 26-28: SPA-Francorchamps
June 23-25: Monza
July 21-23: Paul Ricard
Sept 29-Oct 1: Mugello
Oct 13-15: Vallelunga
Avatar (2009)
Director: James Cameron
Stars: Sam Worthington, Zoe Saldana, Sigourney Weaver
Rating: 3/5
LIVERPOOL TOP SCORERS
(Premier League only)
Mohamed Salah 129
Robbie Fowler 128
Steven Gerrard 120
Michael Owen 118
Sadio Mane 90
More from Neighbourhood Watch: