[ad_1]
The billionaire behind one of the UAE’s largest real estate developers is privatizing the company he founded, saying that Dubai’s emerging real estate rebound will continue.
“It’s great,” Damac Properties founder Hussain Sajwani said on Monday when asked about the recovery of the Dubai real estate industry, which is picking up after years of price drops and severe oversupply.
“In the past 20 years, I have seen Dubai and it has gone through cycles,” said Sajwani, a veteran in the industry, who is known for his bold marketing campaigns and the ultra-budget development projects that have shaped the Dubai skyline.
“I don’t think it’s temporary. It’s long-term,” the real estate agent said.
View of the Damac sign in downtown Dubai. February 10, 2018, Dubai, United Arab Emirates.
Artur Vidak | NurPhoto from Getty Images
According to S&P Global Platts, Dubai’s residential real estate prices have rebounded strongly from historical lows due to suppressed demand, improved investor and consumer confidence, rebound in oil and gas prices, and the gradual recovery of the macro economy. .
According to data from the Dubai Land Authority, the value of real estate sales transactions in Dubai has set a “best third quarter in history”. The agency stated that due to Dubai’s avoidance of lockdown, increased vaccination efforts and enactments, the value of real estate sales in September hit a record high since December 2013. new policy Attract people through The depth of the pandemic.
Although many countries re-imposed lockdowns and travel bans last year, Dubai even stood out among its neighboring emirates, allowing worry-free travel to most destinations. It also relaxed business and visa regulations, and many digital nomads entered the emirate after a population reduction of nearly 8% due to the pandemic in 2020.
Commuters drive along Sheikh Zayed Road, passing commercial and residential properties in Dubai, United Arab Emirates.
Christopher Parker | Bloomberg | Getty Images
It is currently hosting a large-scale event, Expo 2020, which has already been visited by hundreds of thousands of people. Dubai also hosted major events such as the IDEX Defense Exhibition and Gitex Technology Conference, multiple concerts and sports events, and will host the Dubai Air Show and ADIPEC Energy Conference in November.
Sajwani said that people came to Dubai during the lockdown of their country and found safety, medical care, vaccines and security, making the city a more attractive place for investment. “From this perspective, Dubai is really prosperous,” Sajwani added.
Renters in Dubai have also felt the sharp rise in the market. Many young professionals posted advertisements looking for rooms in shared housing and left the apartment because they said the landlord had increased the rent by 30% to 50%.
Change in pitch
Sajwani’s comments are a major shift in the tycoon’s final assessment of the market. In 2019, he passed an appeal Stop construction immediately, Warned that Dubai will face “disaster” if it continues to oversupply.
S&P Global Ratings analysts have a negative outlook on DAMAC’s rating, and they believe that Dubai is not out of the predicament. The organization stated in a research report published in October: “The structural oversupply of residential properties in Dubai will challenge price increases in the long term and make the recovery fragile.”
But Sajwani is not worried. He said that major developers in Dubai, including his long-time rival Emaar, have become “more mature and cautious” during the pandemic. He said that prices “may not” increase at the rate of the past 12 months.
The Dubai Ministry of Economic Development expects a 3.1% growth in 2021 Reopening and the impact of Expo 2020. It forecasts an economic growth of 3.4% in 2022.
Delisting plan
After years of sluggish investor returns, Sajwani also provided more insights into his plan to delist Damac Properties from the Dubai financial market. Damac Properties reported a net loss of 291 million dirhams (US$79.2 million) in the first half of 2021.
Maple Invest, controlled by Sajwani, privatized Damac at a price of 1.40 dirhams ($0.38) per share. A few investors rejected the initial offer of AED 1.30.
“I think AED 1.40 is a reasonable number,” he said, while also refuting investor criticism that Damac will be privatized as the Dubai market shows signs of recovery.
“We believe that privatization is in the company’s interest because we are expanding overseas and there are risks,” Sajwani said, adding that the burden of quarterly reports is causing losses.
“Your competitors know all your information, all your data, all your profits, your sales… and are against you in a very competitive market,” he said.
[ad_2]
Source link