By: Mahmoud Gamal
Dubai – Mubasher: Damac Properties, the leading Dubai-based real estate developer, is looking forward to continuing its operations and projects delivery in 2020 despite the challenges facing the real estate sector, in terms of the witnessed decline in prices, the Emirati billionaire and chairman of Damac Hussain Sajwani said.
In an interview with Mubasher, Hussain Sajwani highlighted that the company will focus on handing over the units as well as the completion of all the projects that have been launched over the past years.
Damac is aware of the market’s future needs, Sajwani said, pointing out that the company sets its strategic plans to meet the current and future demands in Dubai.
“In line with the ongoing development in Dubai and with the expats choosing the city to be their long-term settlement place, the company focuses on building multi-use residential communities that enable residents to live and work while enjoying social and recreational activities,” the chairman told Mubasher.
The Emirati mogul stressed that Damac’s vision complies with Dubai’s expectations, noting that the company will carry on its vital role in the development process in Dubai.
Despite challenges over the past years, the real estate sector has been a profitable addition to the portfolio of wealthy investors, Sajwani said.
The Emirate succeeded in achieving a great progress over the past years, making it an attractive option for investors from across the globe, he indicated.
Damac’s chairman added, “Due to the advanced lifestyle, integrated infrastructure, and comfort it provides to residents, Dubai has become one of the most appealing cities in the world for investment.”
Sajwani projected the real estate sector to go through different situations, in terms of the intensity of supply and demand, pointing out that investors and buyers always prefer the flexible market that offers adaptation and prompt response to its different states.
The long-term forecasts for the real estate market in Dubai are still positive, backed by the recent government initiatives that will boost the market, he noted.
These initiatives include the recently announced laws by the UAE government regarding the long-term residency visas for expats and the 100% ownership for foreigners.
The sector is likely to be stable in 2020. However, the market is expected to witness a significant increase in prices.
Supply and demand
Sajwani said that volatile supply and demand in dynamic markets, such as the real estate market, are healthy and help boost innovation,.
Although the real estate market experiences these swings occasionally, it is sometimes pushed by the supply while in other times the demand is the controller, Damac’s chairman explained, adding that the supply in the property market is currently higher than the demand; therefore, the market is witnessing purchasers in the current time.
Investors that are aware of the market will take advantage of this point to guarantee benefit once the state of demand arises, he noted.
Higher Real Estate Committee
The Emirati tycoon remarked that it is a positive step to form a Higher Real Estate Planning Committee headed by Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum.
This move reflects the UAE’s leadership strategy in establishing a strong economy, not relying only on crude oil and also able to compete globally, Sajwani highlighted.
The Real Estate Planning Committee will help leading developers to communicate effectively and set the proper future plans for the real estate economy, he clarified.
This committee will also help developers avoid repetition in real estate projects, in addition to setting an integrated strategy for all the large-scale projects to be launched in Dubai within the next ten years, he noted.
The real estate sector is expected to leap after it has witnessed a slight slowdown in 2018, Hussain Sajwani told Mubasher.
Damac’s chairman emphasised that Dubai’s leadership has directed the economy towards economic growth and progress.
Aiming to shift Dubai and the UAE towards the knowledge economy, Sheikh Mohammed bin Rashid Al Maktoum’s long-term vision has boosted investors’ confidence in the real estate market in Dubai, Sajwani added.
Expats now tend to settle in the UAE for long terms after it was previously considered as a destination for transit, Sajwani highlighted, pointing out that this change has remarkably impacted the property sector by turning tenants into owners.
Translated by: Mai Ezz El-Din