Yousef Al Arabi (Dubai)
Mohammed Al Habtoor, Vice President and CEO of Al Habtoor Group, said that the group intends to offer part of its shares for public subscription on the Dubai Financial Market.
In a press statement yesterday, on the sidelines of the launch of the penthouse units in Al Habtoor City, he added that the offering that the group seeks will be according to market conditions. He explained that the group’s investment allocations amount to about 3 billion dirhams.
Mohammed Al Habtoor said that this year is an ideal opportunity for real estate investment in the local market, as it is likely that prices will continue to rise at the level of apartments and villas at the beginning of next year. He noted that the confidence of investors and investment portfolios in the UAE real estate sector was enhanced as a result of the ideal management of the challenges caused by Corona, as the UAE outperformed the rest of the countries in dealing with the pandemic and the resumption of economic activity within a short period. He pointed out that the country’s success in overcoming the challenges of the pandemic came as a result of concerted government and private efforts, which was positively reflected on the performance of the real estate sector in the country.
growing confidence
Al Habtoor stressed that the reports issued by the Dubai Land Department reflect an auspicious situation for the real estate market in the emirate. He added that the prices of apartments and villas have great prospects for an increase, as they are sold at prices below their real value compared to similar global markets in America and Europe. He pointed out that investing in buying a house in the UAE at the present time is a good investment according to the expectations of real estate specialists, as it is expected that real estate prices will continue to rise by the end of this year and the beginning of next year.
investment returns
Regarding the performance of luxury real estate, Al Habtoor said that most of the real estate available in the real estate market in the country, especially in Dubai, falls within the luxury real estate category, as in the areas of Business Bay, Palm Jumeirah and Downtown Dubai. He pointed out that some luxury properties are distinguished from others by the finest finishes and perhaps alliances with some brands, but they always generate good investment returns on rent or development. He explained that luxury real estate is characterized by the stability of its prices, regardless of the performance of the real estate market in the region or the world. He pointed out that the rental return on real estate investment in the local market currently ranges between 5% and 7%, as rents have increased by between 10% and 15% in high-end areas.
Al Habtoor City
Mohammed Al Habtoor confirmed that the total investments in Al Habtoor City have so far amounted to 12.8 billion dirhams ($3.5 billion), pointing out that 100% of the city’s projects, which include 1,500 housing units and 1,600 hotel rooms, have been implemented. Al Habtoor explained that the percentage of sales in the housing units in Al Habtoor City has reached 72% so far, after selling 1080 housing units, 70% of which were sold in cash, while 30% were sold with real estate financing.