Day: September 30, 2023

As the emirate’s real estate market continues to flourish due to strong investor demand, Dubai real estate firm Azizi Developments has begun construction on a Dh30 billion dollars ($8.16 billion) mixed-use building.

The developer announced on Thursday that the Azizi Venice construction project in Dubai South will have more than 30,000 units, comprising 100 mid-rise apartment buildings along with more than 400 villas and palaces.

In addition to other facilities, the project, which is being built on a 15 million square foot parcel of land, will include Dubai’s second opera theater after Dubai Opera and a temperature-controlled pedestrianized boulevard.

According to Mirwais Azizi, chairman and president of Azizi Developments, “This community will become a… home for about 80,000 residents and a… tourist attraction for about 30,000 visitors daily.”

Due in part to government initiatives like granting residency permits to retired people and remote employees, Dubai’s real estate market has recovered strongly from the downturn brought on by the coronavirus.
The emirate’s decision to broaden the ten-year golden visa program, the economic benefits of Expo 2020 Dubai, and rising oil prices all contributed to the momentum of the real estate market expansion.

In line with strong demand and sustained economic growth, domestic real estate prices in Dubai increased 17% on an annual basis in the second quarter, representing the 10th successive quarter of gain, according to a report released last month by consultancy Knight Frank.
According to the report, property prices increased 4.8% from the prior quarter during the months of April to June.

In addition, Dubai experienced the greatest rate of selling of properties worth over ten million dollars anywhere in the globe in the subsequent quarter of 2023, according to a different report this month from Knight Frank.

According to the research, the emirate sold 95 houses worth over ten million, up from 53 throughout the identical period previous year, outpacing sales in 11 other cities, notably New York, London, Paris, Shanghai, Hong Kong, Sydney, and Singapore.
In response to the emirate’s high investor demand, multiple fresh endeavors have been created.

In order to purchase properties in the developer Nakheel’s brand-new riverfront villa development at Palm Jebel Ali, hundreds of customers waited outside its sales center for hours last week.

A lagoon, coastlines, and melodic and dancing fountains would also be part of the development, according to Azizi.

It was said in the announcement that Azizi, as the chief developer, would be in charge of erecting the structures, roads, and other infrastructure.

Along with one tiny hotel on a small island in the midst of the lagoon, the neighborhood will also contain two five-star hotels that are owned and managed by Azizi.

It will also contain yoga and athletics schools, a medical center, a cycling and running track, and an avenue with shops and restaurants.
According to a May statement from Azizi, the business intends to invest up to Dh60 billion in the development of its portfolio of 50 hotels and resorts in Dubai, including a seven-star hotel.

 

According to a rating agency, an increase of tourists, government efforts, and technological improvements would promote economic growth.
According to a recent report, the UAE’s GDP is predicted to increase by 4% in 2024 and 3% this year due to robust non-oil sector growth.

According to S&P analysts, the country’s economic growth will be fueled by increasing tourist arrivals, helpful government efforts, and advancing technology.

Wholesale commerce, industry, property, construction, financial services, tourism, and oil and gas are expected to be major drivers of the nation’s economic growth in 2024, according to Trevor Cullinan, national ratings analyst at S&P, who spoke to state news agency Wam.

S&P stated that the economic and social policies put in place by the administration over the previous two years “are strategically designed to pave the way for received, long-term economic expansion.”

“The UAE’s grandiose goal of luring 40 million tourists by 2030, along with the intention of raising the total amount of lodgings to 250,000 over the same period, are anticipated to have a pivotal role in the nation’s capacity to host big international events.”

The predicted economic growth is in line with predictions made by the UAE central bank, which anticipates that the nation’s GDP will rise by 3.3% this year.

In the UAE’s non-oil private sector economy, business activity remained brisk in August, with output and the number of new orders both rising.

The second-largest economy in the Arab world, as measured by the adjusted for the season S&P Global purchasing managers’ index, fell from 56 in July to 55 in August. That was far higher than the neutral 50-point line dividing growth from contraction.

As productivity increased significantly and firms experienced their fastest drop in time to delivery in more than four years, the year-ahead optimism among those questioned reached its best level since March 2020.
Expatriate and tourist inflows, as well as favorable mood from investors, consumers, and the private sector, will support the UAE’s non-oil economy, according to Mr. Cullinan.