Emaar Plans To Gain Market Share And Sales Aggressively In A Booming UAE Economy
The managing director at Emaar Properties said that despite the global headwinds, the UAE economy is booming and the company wants to expand its sales and market share aggressively.
Recently, Mohamed Alabbar explained to sources how the market at the moment is good, but Emaar Properties must push hard and extremely aggressively to take market share and increase sales. The global economy is facing uncertainty, inflationary pressures, and monetary tightening around the globe, but Mr. Alabbar remains optimistic.
Due to the cyclical nature of his industry: real estate, he has lived a paranoid and worried life. Having a great balance sheet, great people, and being able to handle tough winters are his biggest concerns. The world we live in is volatile, one week there is a Corona, and the next war is going to happen. For now, we seem to be doing well, he claimed.
It is estimated that the UAE economy, which is the second-largest in the Arab world, will expand by 5.4 percent this year. Despite a strong rise in oil and non-oil prices, Emirates NBD predicts the economy will grow by 7.4% in 2022, First Abu Dhabi Bank expects growth of 6.7%, and Abu Dhabi Commercial Bank expects growth of 6.2%.
Dubai’s property market has continued to increase momentum this year after recovering strongly from last year’s pandemic-driven slowdown. According to the latest property reports, the average price of residential properties in UAE increased by 10 percent from June to June, while UAE apartment prices increased by 9 percent and villa prices by 19 percent.
As a result of government initiatives like residency permits for retirees and remote workers, along with the expansion of the 10-year Golden Visa program, developers, including Emaar, are launching new projects to cater to the increasing demand for residential and commercial properties in UAE.
Dubai reported a 12-year high in both volume and value for off-plan and secondary property sales in the third quarter, according to real estate experts. In the third quarter of 2022, a total of 25,456 sales transactions totaled Dh69.72bn, representing an increase of more than 65 percent in regard to value and about 62 percent in regard to volume.
Property market’s latest report said Dubai’s residential market reached 7,273 transactions in September, up 33.4% on an annual basis. The average price of an apartment rose 8 percent, while that of a villa increased 14.3 percent amid a strong buyer’s market.
While Dubai’s prices remain below their peak in 2014, Mr. Alabbar believes that its value remains high compared with other global cities.
It is unlikely that the global macroeconomic slowdown will be as severe as that during the Covid-19 pandemic, which Emaar continues to pursue aggressively. According to the Managing Director of Emaar, the world economy will not slow down significantly. It has already been nine months since the beginning of this war, so if there was anything that could go wrong by now, it would have, he believes.
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