Despite in the threat of another property squeeze in UAE, there are still luxury properties underway, looking undaunted about the slowdown in the market.
One of the latest Dubai developer to showcase an off-plan luxury apartments is Azizi Developments. The company is trying to attract investors to inject capital between Dh2.2 million and Dh4.5 million in its Royal Bay Residence, The National reported. The 90-unit luxury apartments is currently being developed in The Palm Jumeirah, between the Anantara and the Viceroy hotels.
Azizi's development comes amid the strong dollar against dirham and increasing oil prices which are impacting the housing market in UAE. Last year, average house prices plunged by as much as 15 percent and KPMG predicted that the fall will continue throughout this year. This is because of the ongoing political turmoil in some parts of the Middle East, along with economic slowdown in China, government budget cuts and job losses.
The falling house prices consequently pushed developers to have about 6,000 units nearing completion to sit empty, hoping for market to stabilize before they list them for sale. But apparently, this is not a concern for Azizi.
"We are in a very healthy phase of the property cycle," says Farhad Azizi, the chief executive of Azizi Developments. "The next few months will see market stabilisation and then the economy is going to recover very fast by mid-2017. These are good times for buyers to invest in a good location and good property to make a profit and capitalise on quick price appreciation."
Another luxury developer Damac Properties, according to The National, just recently announced its plan to construct six new towers of hotels, apartments and offices. The Dh7.4 billion Aykon City, to be overlooking Dubai Canal and Safa Park, include 80 floors and 63 floors of hotel apartments, 65 floors of offices and two towers with 30 floors of each of "ultra-luxury" flats. The project begins this summer and is expected to be completed by 2021.