Dubai, often hailed as the City of Gold, is experiencing a remarkable resurgence in its real estate market. In an exclusive interview with Khaleej Times, Balvinder Singh Sahni, fondly known as Abu Sabah, a prominent Dubai-based billionaire and chairman of RSG Group, shares his insights on the current state of Dubai’s property market. Contrary to speculation, he firmly asserts that the market has not yet peaked, citing diverse global investments and a surge in end-users as indicators of sustained growth.
The Evolution of Dubai’s Real Estate Landscape: Abu Sabah, an advocate of the build-and-lease philosophy, traces his real estate journey from a savvy investor to a renowned developer. Recalling his early foray into Dubai’s property market in the 1990s, he highlights the visionary move of acquiring land in Mirdif for a mere Dh6 per sqft. This strategic investment, which was ahead of its time, witnessed exponential growth, reaching Dh600 to Dh1,000 per sqft in 2006-07.
Diverse Investor Base: Dubai’s real estate landscape has undergone a transformative shift, evolving from attracting investors primarily from Iran, India, Pakistan, and Britain to becoming a magnet for a more diverse range of global players. Abu Sabah points out that today’s investors include Russians, Italians, Germans, Americans, Canadians, and Indonesians, reflecting the city’s appeal to a multi-cultural demographic. The influx of end-users, drawn to Dubai for its security, robust infrastructure, and cosmopolitan environment, is a testament to the city’s enduring allure.
Factors Driving Dubai’s Ongoing Property Boom: As the market enters its third rally post the Covid-19 pandemic, Abu Sabah identifies key factors propelling Dubai’s ongoing property boom. He attributes the surge in investments to the city’s reputation for providing a secure environment, world-class infrastructure, and a rich tapestry of cultures. The increasing trend of families relocating to Dubai further amplifies the demand for quality education and healthcare facilities, contributing to the sustained growth of the real estate sector.
Abu Sabah’s Build and Lease Strategy: A stalwart in the real estate arena, Abu Sabah emphasizes his unconventional approach to real estate development—building before selling. He shares insights into the Fairmont project on Sheikh Zayed Road, where 65% completion preceded the commencement of sales. This approach, rooted in his belief of delivering tangible value before seeking investment, has become a hallmark of his success in Dubai’s dynamic property market.
The Uncharted Future: Looking ahead, Abu Sabah remains optimistic about the untapped potential within Dubai’s real estate sector. He foresees continued growth driven by a combination of factors, including sustained investor confidence, a burgeoning end-user market, and ongoing infrastructure developments. As more nationalities become integral parts of the city’s diverse fabric, the real estate landscape is poised to reach new heights, debunking speculations about an imminent market peak.
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