This is luxury
DAMAC managing director Ziad El Chaar reflects on the developer’s success
Much has happened in Dubai over the last 12 months; the development of investor protections laws, the reinforcement of Escrow requirements and a shift in global market dynamics that has seen unprecedented numbers of foreign investors moving to the Middle East to enjoy the benefits of a tax free life in sun drenched luxury.
Similar sentiments may today resonate across many sectors, but DAMAC managing director Ziad El Chaar has said it all before.
“At Cityscape 2011 we sent a message out to everybody that the market is growing, that Dubai is back and that you need to be in this real estate market. All the factors that have happened over the 11 months since are showing that we can go to Cityscape 2012 and say we were right,” he asserts.
By the end of 2011, transactions were up 20% and figures from Dubai Land Department (DLD) show transactions increased 21% during H1 2012.
While it has its benefits, year round sunshine is not the sole factor behind the rising rate of transactions – and the renewed push in construction. Praising the foresight of government planning authorities, El Chaar observes the heightened activity is concentrated in areas of Dubai that also have high quality infrastructure – not only in terms of 12-lane high ways and metro stations, but social amenities such as schools, hospitals and entertainment facilities.
“The fundamentals of demand in this country are based in geographical location, which I am sure has not changed; life style; and the services provided for all the companies from free zones to business set ups and export markets. This market now is very strong in these terms.
“[With this infrastructure] your life in that area is complete. It’s not just about developing an area to have utilities it’s about having great connection to this area and the whole rest of the world. With all these things available in this area and the current prices, this is the most promising real estate market currently” he continues.
And as the market regains momentum, so too does the diversity of the investor profile, with more ‘middle classes’ residing in communities alongside those of the rich and super rich, El Chaar goes on to explain, concluding that recent development are testament to a “complete market”.
