Business investment in any country is a very tricky one. Much depends on the financial health of respective countries, each country’s economic fundamentals, the global economic scenario and the prudent policy decisions being taken by the government to ensure a sustainable investment environment. A classic example is the investment boom happening in Dubai, which had learned some bitter lessons from the past. Today, the investment scenario in Dubai is on a revival mode with the result that Dubai’s real estate business, the country’s main economic backbone, is moving towards stability.
The well-deliberated measures taken by the Dubai Land Department in doubling the transfer fee and the UAE Central Bank applying mortgage cap are showing results. These key indicators not only show that the property sector of Dubai is heading towards stability but also mean that all concerns of a boom and bust cycle would be gone forever, according to experts. It is estimated that Dubai’s population will reach 3.1 million by 2020. A lot depends on the fulfilling of the handover dates of master developmental projects as it is the sole factor that will strengthen the investors’ interest further. Supply and demand ratio is vital for a safer property market in future; it appears that currently things are moving on the right track, adding to the credentials of this booming nation.
The residential market has performed astutely well during the last two years, and experts are of the opinion that, in the next two years, the emirate will witness a better performing commercial real estate sector. The challenges that Dubai faced to get back to a sustainable course of development were many. First, it was getting back on its feet in 2013 when prices leapt for the sky, 2014 saw stability and a rather subdued growth, but a strengthening property market, and 2015 is yet to be another surprise. In a nutshell, the residential sector is back on track and the future is for the commercial sector to shine, according to market observers.
In an exclusive interview given to Safety Messenger, Dr Ravi Pillai, Chairman and CEO of the renowned RP Group, of Dubai, elaborates the current investment climate in Dubai, the ground realities and the challenges ahead, besides how his group is planning to be a partner of Dubai’s economic revival. Excerpts:
(Read the best part of this Interview from the November issue of Safety Messenger Magazine 2015)