Dubai-Mubasher: The Dubai real estate market created opportunities for well capitalised and experienced companies with a strong track record like Damac Properties, said the property developer’s Chairman Hussain Sajwani.
Sajwani said that DAMAC is focused on leveraging its competitive edge, believing in having a set of levers that will allow it to continue to post solid results in the year to come.
Commenting on market sentiment, he said that the oil price dynamic is certainly a factor, but one should always remember that a falling oil price creates as well as erodes wealth.
Sajwani added that devaluing currencies push asset prices up in hard dollars, as well as driving investors to want to lock in parts of their wealth in the hard currency in fear of further devaluation.
He went on to say that “we expect the market in Dubai in 2016 to demonstrate its resilience against the background of the challenging economic environment. We see the structural shortage of supply as the cornerstone of the market resilience.”
He concluded that the total supply in Dubai is projected to again fall short of 10,000 new units in 2016 eventually driving the market back into positive pricing growth territory, perhaps towards the second half of the year or early 2017.
