Real estate sector. Dubai balance between offer and demand
Date: June 24 2017
One of the points often raised in real estate sector stockholder discussions during Ramadan time, is the balance between supply and demand, looking at Dubai foreseen future property delivery numbers as oversupply against the actual demand levels.
The argument raised against the feeling of unbalance between supply and demand is that it is estimated that 80% of the demand shall come from international investment in the future, while at the moment it is reaching 50% only.
It is therefore expected foreign investment to play a key role in the future and in some cases, introducing a bit of skepticism, as the oversupply stays as one of the main causes of a possible price crisis in the future.
RERA CEO Marwin Bin Ghalaita dismisses any concern of oversupply by declaring: With the rapid growth of Dubai as a global commercial hub and tourism destination, increasing population, more job opportunities and a continuous interest of foreign investors, demand is there and it is continuously growing.”
Developers are real estates most reputed agencies on the other hand raised remarks about the important role for the successful attraction of foreign investments represented by the Dubai Land Department activity and the banks policies related to money transfer.
While major sector stakeholders keep sharing information and views, it is a common sentiment the fact that keeping the communication flow active is a crucial factor, where attracting foreign investment becomes today more than ever in the past, a teamwork play where every player has to execute at its absolute best.