Special report
The pace of construction in Dubai has accelerated dramatically in the last two decades, so companies have become competitive in building luxury properties and high-rise buildings that achieve a good reputation and attract the attention of investors to it.
With the continuous growth of the construction and real estate development movement in the emirate, Dubai has become one of the world-famous cities in the real estate circles, which has brought a positive return on the sector and even extended to other sectors such as tourism, hospitality and finance. .
However, with the increase in the real estate boom in Dubai recently, a situation of saturation followed by the recession in the sector began to appear, which led to a decrease in real estate prices on the residential and investment levels, especially in the recent quarters. From last year.
What happened from the real estate sector in Dubai is in line with the famous economic rule, increasing the supply and declining demand decreases in price, and any increase in this supply with the decrease of purchasing power means more of Landing.
JLL Real Estate Consulting said that Dubai completed in 2018 the construction of 22 thousand new units as the highest number of real estate income in the past five years, bringing the total housing in the emirate To 520,000 units by the end of 2018.
JLL warned against an increase in the real estate supply in the emirate, explaining that this increase will lead to more downward pressure on sales prices and rental returns.
Despite this decline in real estate prices in Dubai, there is optimism towards a prospective correction that may lead to a series of benefits for buyers and the economy on a larger scale, especially if it continues Construction costs are increasing.
The data of the Dubai Statistics Center showed an increase in the index of construction costs in the past year to approach 6% on an annual basis, driven by strong demand for building materials and construction amid the continued development of the structure Dubai infrastructure.
With the increase in construction costs and the prices of materials and raw materials, it is expected that this increase will press the profit margins of developers and contractors, which may lead them to ...
