Dubai market shows signs of recovery

Inayat-ur-Rahman, Gulf Today

Dubai’s construction sector is showing tentative signs of a long-awaited recovery. Real estate developers are planning new projects in response to rising property prices buoyed by the emirate’s recovery from the economic impact of the COVID-19 pandemic.

The clearest sign yet of the resurgent market came on May 20 when Nakheel announced its first new project launch for years. Its plans to build a community of 418 villas known as Murooj al-Furjan next to the existing Al-Furjan community in the Jebel Ali area. On  May 23, the developer reported sales of Dhs800m ($218m) and sold out the 217 villas of the first phase in four hours.

Colin Foreman, a leading business analyst at GlobalData’s MEED, says: “Companies such as Nakheel, Emaar and Meydan are in the early stages of planning new projects. These schemes include villa communities and waterfront apartments, two property classes that continue to perform well with strong demand. Villas are performing well, in particular.”

Foreman continues: “While opportunistic or tactical projects in established locations with proven demand will be the first to be launched, plans are also being considered for strategic projects in newer areas of the emirate: areas such as the Dubai Waterfront and Palm Jebel Ali area on the coast close to the Abu Dhabi border. Although work has begun in these areas before, few established communities exist. As Dubai’s centre of gravity continues to move south - as a result of Al-Maktoum airport, the Expo 2020 site and the Dubai South development - the area could now be ready for development work again.”

With the property market showing signs of recovery, there is an expectation that major infrastructure schemes requiring the involvement of international contractors may also move forward.