Developer says report from Colliers shows UAE real estate market is returning to normality
Damac Properties have awarded a $49.2m contract to Trans Emirates Contracting for the main construction work on a new 26-storey building in Dubai. Zada is taking shape in a master-planned community in Business Bay and is said to offer world-class amenities.
The statement notes that the awarding of the contract is significant given the challenges the property market has faced due to COVID-19. Damac notes that the contract award is a testament to its strong business model, which was able to absorb the market shock caused by the unprecedented pandemic, said a top official.
“We have a strong business model and infrastructure that enables Damac to grow, develop, and advance, despite any challenges we may face. This is a reflection of our organisational capacity to continue our progressive journey. The new contract with Trans Emirates Contracting confirms the extent of our focus on cooperating with only the best contractors to develop our projects while adhering to the highest quality standards, and our Zada project is a reaffirmation of our success in the luxury real estate development sector,” said Niall McLoughlin, SVP at Damac Properties.
Damac says that a recent survey by global real estate advisory firm Colliers International showed that the UAE real estate market has started to see return of normality, since the outbreak of the pandemic. The company stated the report showed a notable increase in first time buyers, and said the Dubai Land Department saw an 11.3% increase in sales this August compared to the same month last year.
The reasons for the uptick can be attributed to a combination of attractive pricing and the fact that many people chose not to travel back to their home countries this summer due to the pandemic, the developer said. The Colliers report also noted an uptick in high-end activity, which bodes well for Damac’s luxury-focused model, the firm explained.