Two new developments in Jumeirah Village in Dubai provide further evidence of growing confidence in the emirate’s real estate market just three years after the international economic downturn led to a huge price crash.
The two developments, Pacific Residencia and Pacific Edmonton Elm are expected to take between 18 to 24 months to complete. Both projects are a result of ambitious plans from residential and commercial property developer Pacific Ventures which is also contemplating future developments in the tourism and healthcare sectors.
“We are extremely optimistic about the real estate market in Dubai as it is an economy which cannot be allowed to fall down completely,” said Parvez Khan, founder of Pacific Ventures. “Everywhere in the world, the business environment is undergoing upheavals and changes, but we are confident that Dubai will always be a key investment hub for serious property investors.”
The news is further confirmation that both the residential and commercial property markets in Dubai are once again seen as a stable source of income by international investors. Dubai was one the worst hit markets as a result of the global recession but there is now a stream of commercial property developments in the pipeline.
There is currently around 60 million sq ft of commercial property in Dubai with a further 10 million sq ft expected by the end of the year. The leading sector remains tourism and hospitality but the retail sector is also seeing an increase in activity as investors spot the opportunity for healthy returns on quality property.
Another encouraging factor is that, despite high levels of vacant office space in Dubai, rental values remain stable. Speaking of the upturn in the market Russell Reed, chief investment officer of Gulf Investment Corporation said; “crashes create opportunities.”