Dubai is Still an Attractive Investment Market and News of Another Super-Tower in Dubai

The Gulf property market still has attractive opportunities for investors seeking to escape a global fall in property investment transactions according to a leading real estate consultancy

Robin Williamson, managing director of DTZ’s Middle East operations, said although the worst of the first phase of the sub-prime crisis appears to have passed, the credit crunch has further to go and will continue well into 2009, particularly across the European and US property markets.

The company’s positive outlook for the Gulf follows the publication of DTZ’s annual Money into Property report, which looks at global property trends.

The report revealed that the value of the real estate capital market reached $12 trillion in 2007, up 18 per cent on the previous year.

Global investment transactions also grew to $730 billion in 2007, but, following the change in the global investment environment last year, DTZ expects a fall of 30 per cent in 2008 to about $500 billion.

Global direct real estate transactions were down some 50 per cent in the first quarter of 2008, compared to the same time in 2007.

“Few regions will escape the effects of the sub-prime fall out,” Williamson said.

“However, we predict that the Gulf region will, to a greater extent, be significantly less affected, along with certain other markets in the Asia Pacific region. Based both on our research and our on-the-ground experience of dealing extensively across the Gulf markets, we have seen strong indications that the regional property markets are much less likely to succumb to these global trends.”

Shortly after the release of the report, IRIS, a real estate consultants and brokerage revealed a $680 million residential development called Iris Mist located in Dubai Maritime City.

The tower’s facade will be built in layers of white pre-cast, aluminum and glass of varying colour and texture.
Ashwin Sheth, chief executive of Iris and managing director of Sheth Estate, said, “With this launch we reconfirm our keenness to meet and exceed the expectations of individuals and investors wishing to buy unique properties at competitive prices within a mixed-use city.”

Designed by internally renowned architects, WS Atkins, IRIS Mist will be the first development in this region to take the shape of patterned sea waves that rise from the Marina over the promenade and gracefully sweep up to 200 meters in height.

When complete, the freehold development will offer 54 residential floors of 355 luxury apartments comprising of one, two and three bedroom units, six retail outlets and 28 units of office space. IRIS Mist will have a built-up area of 850,000 square feet.

According to IRIS, it will cut pollutants and maximize opportunities for passive ventilation and cooling.

DTZ