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Real Estate Firm Confident in Dubai's Real Estate

Posted by Jereco O. Paloma on Feb 16, 2016 12:05 PM EST
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DUBAI, UNITED ARAB EMIRATES - SEPTEMBER 15: A 'For Sale' sign is displayed outside a residential property in Jumeirah Village Circle on September 15, 2015 in Dubai, United Arab Emirates. (Photo : Francois Nel/Getty Images)

A high-ranking official at one of the leading real estate firms in Dubai maintained that the city's vibrant real estate market would continue at least for this year.

According to an interview with the Sunday Times, as reported by Arabian Business, Ziad El Chaar, managing director of Dubai-based real estate firm Damac Properties, said the real estate supply and demand in Dubai would maintain a stable level this year.

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El Chaar's pronouncement was contrary to the recently released predictions of real estate consultancy firm Jones Lang LaSalle (JLL) on the future of Dubai's real estate market this year. In its report, JLL said property prices in the city are expected to fall this year by as much as 10 percent.

Apart from the plunging of real estate prices in Dubai by as much as 10 percent, JLL also predicted that rent will dip by 3 percent. But despite the figures presented by the JLL, El Chaar stood firm on his position about the fate of the city's real estate market for this year.

"We stand by the fact that we have a very attractive market here, a very promising market, a stable market and if all of the other developers in Dubai continue to promote Dubai globally it will always be a resilient market," El Chaar was quoted as saying by Arabian Business.

El Chaar added that economic growth in one of the UAE's leading cities is what drives potential growth in its real estate market. In fact, key sectors in the city's economy, which are important drivers of real estate growth, are expected to grow by as much as 7.5 percent.

According to a separate report from Gulf News, while citing data from JLL, at least 70 percent of real estate projects that are due for completion this year will be delayed. While some experts see this as an indication of the weakening real estate market, some industry players see this as an opportunity for Dubai's property market to stabilize.

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