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Dubai real estate a worthwhile investment: Merrill Lynch

Emirate 24/7
Dubai Marina skyscrapers tower over the costline in Dubai. (DENNIS B. MALLARI)

Dubai Marina skyscrapers tower over the costline in Dubai. (DENNIS B. MALLARI)

Dubai residential property market, previously envisaged to suffer from supply-demand mismatch, will benefit the most as the population is likely to more than double over the next decade and more jobs are being created, says Bank of America Merrill Lynch.

“Diversified economy, continued population growth and superior infrastructure investment will have positive impact on Dubai’s retail, hospitality and residential market,” the bank said in its new medium-term outlook report, “GCC 2020”.

Stating that the real estate sector provides a good exposure to growing consumer spending, mainly led by tourism and sizeable household consumption, the bank said: “We believe the key drivers of the Dubai real estate recovery will be: job creation, improved funding, and good execution of the ongoing diversification strategy away from hydrocarbon-related activities.”

The Dubai Executive Council has recently approved the new 10-year Dubai Urban Development Master Plan-2020. In it, the Dubai government reconsiders its real estate ambitions taking into account all aspects of residential, commercial and industrial infrastructure in the context of slower-than-anticipated population growth.


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