'Dubai property cycles are natural, can adapt to changes'

This year has been better for us: Alabbar

“This year has been better four us than 2015,” Emaar Properties Chairman Mohamed Alabbar said on Sunday as Dubai Land Department revealed Dh55 billion worth of property deals had taken place in the first quarter 2016.

“If you ask me about Emaar’s numbers, I don’t see any pull back,” Alabbar said after unveiling the $1 billion The Tower in Dubai Creek Harbour development.

“2016 for us is surprisingly better than 2015 and the balance between supply and demand is very encouraging,” he added.

Emaar’s profit rose 24 per cent in 2015 to Dh4.08 billion.

“Property cycles are natural. There are good years and there are bad years. Dubai can adapt to changing demand,” Alabbar said ruling out any reduction in prices for its inventory.

On Sunday, Chief Executive Officer Abdulla Lahej resigned with Chief Operating Officer Amit Jain taking over his responsibilities, the company said.

Dubai registers Dh55bn transactions

Separately, the Dubai Land Department (DLD) said total transactions reached Dh54.782bn through 12,568 transactions, while real estate investment transactions reached Dh25bn for the period made by 11,353 investors of 127 nationalities.

Citizens of Gulf Cooperation Council states contributed Dh9bn from 3,476 investors. Emirati investment formed the lion’s share of this figure, with total transactions of Dh6.1bn, while citizens of Saudi Arabia came in at second place after making transactions of Dh1.8bn, followed by Kuwaiti nationals.

Arab investors from outside the GCC’s contribution to the real estate market reached more than Dh3bn, with 1,486 individuals of 16 nationalities making investments.

The total value of foreign investment in the Dubai real estate market amounted to more than Dh12bn, with 105 nationalities from 6,391 investors, the department said.

KPMG, a consulting and audit firm, has said property prices in the emirate will be under pressure this year due to lower oil prices and strong US dollar, the market will start to recover in 2017 as infrastructure work surrounding the Expo 2020 gets under way.

Dubai has already named the designers of the Expo 2020 pavilions, will start work on the Route 2020 – the Dubai Metro extension from Nakheel Harbour and Station to Expo 2020 site, and begin design work on Metro Green Line extension next year.