The billionaire CEO of one of Dubai's top developers has predicted a "surprising" resurgence in the city's real estate market that would continue through 2022.
In a Bloomberg TV interview, the chairman of Damac Properties, Hussain Sajwani, claimed that he was "completely incorrect." "I was taken aback by how quickly things had changed." According to him, next year will be just as excellent or better than 2021 because of the pandemic's effect on the emirate's population.
The number of coronavirus cases in the United Arab Emirates has dropped dramatically as a result of a rapid vaccination campaign.
Since emerging from a lockdown last year, Dubai has opted not to implement one, unlike other major financial centres. That, according to Sajwani, has made the city a desirable destination.
Sajwani's remarks this year depart from his warnings last year that Dubai's lenders might be in jeopardy due to chronic oversupply.
While the supply glut lowered prices significantly, things are looking better lately, with average house prices rising at the quickest rate since 2015 and transaction volumes increasing by 77% in August, according to real estate advisor CBRE Group.
The business's owner, Sajwani, who bid to buy the company earlier this year, indicated he might opt to invest abroad if the sale goes through.
"As a public firm, we stayed away from international ventures since minority shareholders do not want to take risks with their money," he said
Since the 2015 local listing price of Damac was much lower than Sajwani's bid, it prompted regulatory scrutiny and a reaction from minority investors. In the end, he raised his offer by 8%.