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Finishing 3936 New Buildings in Dubai Amounting to AED 12.7 BN

​​Image: Group of buildings in Dubai
​​Image: Group of buildings in Dubai

According to Dubai Statistics Center's data, during the first nine month of this year, Dubai has finalized establishing 3936 buildings amounting to AED 12,674 BN, compared to 3395 buildings amounting to AED 21,696 BN during the same period of last year. As per the statistical report Al-Ittihad has obtained a copy of, the third quarter of this year witnessed the establishment of 1030 buildings amounting to AED 4.04 BN, compared to establishing 1152 buildings amounting to AED 4.73 BN during the same period last year, as well as 1563 buildings amounting to AED 4,925 BN during the second quarter of 2015. Real estate experts advised that the reason for the decrease in the value of buildings established, in spite of the increase in the number of buildings established in Dubai in the first nine months of this year, to the decrease in the prices of building materials and focusing more on residency buildings that target those with medium incomes. They also advised that a large number of real estate developers tend to make use of the decrease in the cost of building materials in proceeding with real estate projects, in spite of the relative stillness in the volume of transactions.

Buildings established in Dubai during the aforementioned period ranged from private villas to multi-story buildings, investment villas, industrial buildings and public establishments. As per the latest statistical report, 1783 private villas were established at the amount of AED 3.46 BN during the first nine months of this year, also 456 villas at the amount of AED 1.04 BN during the third quarter of this year, compared to 1890 private villas amounting to AED 2.8 BN during the first nine months of last year and about 704 private villas amounting to AED 900 Mio during the third quarter of last year.

 

As regards investment villas, 1607 villas were established at the amount of AED 3.46 BN during the first nine months of this year, compared to 997 investment villas amounting to AED 1.77 BN during same period of lat year and about 392 investment villas amounting to AED 410 Mio during the third quarter of this year, compared to 308 investment villas amounting to AED 932 Mio during the same period of last year. As per the industrial buildings, 204 industrial buildings were established in Dubai amounting to AED 1.23 BN during the first nine months of this year, compared to 192 industrial buildings amounting to AED 2,878 BN during the same period of last year. Also, about 73 industrial buildings amounting to AED 333 Mio during the third quarter of this year, compared to 48 industrial buildings amounting to AED 205 Mio during the same period of last year. DSC's data showed that 126 public establishment were built at the amount of AED 1.66 BN during the period from January to September and about 33 public establishments amounting to AED 643 Mio during the third quarter of this year.

Real estate consultant Ismail Al-Hammadi, establisher and CEO of Al Rowad Co., advised Al-Ittihad that,  "A large part of real estate developers are currently focusing on finalizing projects and buildings that are under execution to catch up with EXPO 2020; also to make use of the relative decrease in the prices of building materials.". Al-Hammadi pointed out that in spite of the stillness of transactions in the real estate sector, the increase in returns on investments in this sector is considered a main driver for completing the projects, also the availability of bank finance enhanced the establishment movement in Dubai during the last period. Al-Hammadi expects the sector to continue developing, especially with the approaching of Dubai's hosting of EXPO 2020, resulting in activating tourism in Dubai in specific and the country in general. It will also enhance the attractiveness of the sector to draw foreign investments during the coming years.

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