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Dubai Real Estate: Stocks, Homebuyers See Positive Future

Posted by Staff Reporter on Mar 28, 2016 08:36 AM EDT
The Growing Economy Of Dubai more big
The iconic Emirates Towers dominate the skyline beside the wide boulevard of Sheikh Zayed Road on December 3, 2007 in Dubai, United Arab Emirates. The towers have been lit up this week to celebrate the 36th UAE National Day (Al-Eid Al Watani) on December 2nd. Over the last decade, Dubai has transformed into a futuristic city that now boasts the tallest building in the world (Al Burj). The exponential growth in the construction industry has led to problems such as excess traffic and congestion. A new metro line is due to be completed in 2008 in an attempt to alleviate the problem. (Photo : Getty Images/Chris Jackson)

The real estate industry in Dubai had made a comeback on the stock markets as well as on the property aspects. The shared prices of real estate corporations had been beating the wider Dubai financial market index, since it reached a low on Dec. 20.

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Stocks of Emaar and Union Properties, for instance, increased by up to 43 and 46 percent respectively. Construction leader Arabtec soared to an 82 percent increase before decreasing some of those gains in recent weeks.

The activity of investors hurrying in to get bargains while being driven by a sense of forced optimism started to take hold in Dubai. Sameer Lakhani, Managing Director at Global Capital Partners, said that there seemed to be more optimism on the earnings visibility as investors started have find out that the degree of their pessimism had been over the top.

Dubai investment firms have realized that it was difficult to determine whether the recent increase in volumes had been concentrated among a smaller number of investors. So far, Arabtec and Emaar had the largest investor base on DFM. This suggested that it was likely that the activity had been broad rather than concentrated, according to Khaleej Times.

However, economists had also advised that sentiments of upbeat investors should not be overestimated. There will be times of extreme volatility ahead, both relating to macro issues from oil prices, as well as the fact that listed companies had reevaluated their International Financial accounting standards. These factors would have a bearing on the upcoming first quarter financials, according to Gulf News.

Meanwhile, home buyers in Dubai continue to go through some of the best bargains. The first few weeks of the year saw these bargains reflected in purchases from Jumeirah Village, Sports City and JLT.

Dubai residential properties have also extended to prime locations. 

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