Author : Shuchita Bist
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Abid Junaid, Executive Director, ETA Star |
Gowealthy.com had an opportunity to interview Mr. Abid Junaid, Executive Director, ETA Star to get his views on Dubai real estate. According to Mr. Junaid, the current trend of property boom in Dubai will continue for at least another 3 years. When asked about the properties by ETA Star, he replied that their prices have appreciated from 30% to even 100% in some master communities.
Q.1. Trend in Dubai property market for the year 2008 - Your observation.
Ans. We have seen robust growth in the market for the past 8 months and see this trend continuing for the rest of the year. Despite inflationary pressures affecting cost of construction and therefore prices, consumers will continue to enjoy the boom from developers offering tangible value-adds.
Q.2. What is your opinion regarding the property prices in Dubai for next 2-3 years? Will they rise, remain steady or fall?
Ans. We see the current trend of market boom for another 3 years at least and although prices will stabilize, we do not see any fall in prices in the immediate future.
Q.3. To what would you attribute increased foreign investment in Dubai freehold properties?
Ans. The very concept of freehold ownership, the genuine boom being witnessed and the legal framework are the reasons we see so much foreign investment. The Dubai model is being appreciated all over the world.
Q.4. Do you think labor shortages and rising cost (of construction materials, in particular) will affect the delivery of projects in Dubai?
Ans. The continued increase in the cost of construction is a major worry as contractors are unable to perform within their contracted prices and the developer also is unable to consider any cost increase due to fixed lump sum contracts as well as majority of units have been pre-sold. This has an impact on delivery of projects.
Q.5. What do you think are the reasons for Dubai real estate to be unaffected by global property recession?
Ans. One of the prime reasons is that Dubai is supported by the oil economy of the neighboring regions and as long as the income from oil is available for investment in the real estate sector, the required liquidity is there. Besides, the Dubai business model is unique and coupled with the strategic location, is an attraction for expatriates to live and work in the UAE.
Q.6. Has the implementation of the recent real estate laws by the government had any significant impact on the sale of properties in Dubai?
Ans. The new laws have only protected the consumers more and hence the sentiments to buy properties are even stronger now.
Q.7. How much has the prices of properties by ETA appreciated? What are the new offerings planned for the next year?
Ans. Property prices have appreciated from 30% to even 100% in some master communities. ETA Star while offering large enough properties in Dubai will go international in the coming year with projects to be launched in the Far East in 2009.
Q.8. Where do you see Dubai - as a real estate investment base - in next 5 years?
Ans. Dubai will remain an investment haven for at least another 3 years. However, we at ETA Star are focused on providing good living environments to those who desire to own their own dream homes.
About ETA Star: ETA Star Property Developers LLC, a part of the ETA Ascon & Star Group, is a $6 billion conglomerate. ETA Star Property Developers is developing over 50 million sq ft of premium property in countries in Middle East and South East Asia, including UAE, Oman and India. In the UAE, ETA Star's portfolio currently includes premium commercial, residential and hospitality projects. Verde Offices and Residences, The Grandeur Residences, 23 Marina, Liberty House, Goldcrest Views-2, Goldcrest Executive, The Summit are some of the prominent projects of ETA Star that are currently being developed. The first ISO certified developer in the region and voted Superbrand for two years in a row, ETA Star is among the few developers who have started delivery of projects with all others scheduled to deliver as promised.
By: Shuchita Bist
Creative Writer
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