The projected expansion in Dubai's population will create demand for more than 43,000 additional residential units annually through to 2010, according to the Dubai Chamber of Commerce and Industry (DCCI).
Based on current growth rates, by the year 2010 Dubai population is projected to be 1.845 million - an increase of 432,000 people between 2006 and 2010. This gives an annual increase of 108,000 during a period of four years.
If Dubai is benchmarked against internationally accepted standards where a residential unit accommodates 2.5 persons, the emirate needs 43,233 additional residential units annually to accommodate them, the DCCI stated in its report Demand Prospects of Dubai Real Estate.
DCCI highlighted an estimate by EGF-Hermes, which said 40,000 to 50,000 units will be supplied annually in Dubai. According to the report, rising income levels is another key driver for the real estate industry.
For the medium term and during the period 2000-2006, Dubai GDP grew by cumulative annual growth rate (CAGR) of 13 per cent in real terms while population grew by CAGR of nine per cent (as compared to seven per cent for the long term). Therefore, real per capita income grew by CAGR of four per cent during this medium term period.
Impressive growth
"This is an impressive income growth that has positive implications for real estate demand in Dubai," the report said.
The study stressed that the relatively low cost of mortgage financing in Dubai, compared to personal loans, has fuelled demand for real estate. Source
Based on current growth rates, by the year 2010 Dubai population is projected to be 1.845 million - an increase of 432,000 people between 2006 and 2010. This gives an annual increase of 108,000 during a period of four years.
If Dubai is benchmarked against internationally accepted standards where a residential unit accommodates 2.5 persons, the emirate needs 43,233 additional residential units annually to accommodate them, the DCCI stated in its report Demand Prospects of Dubai Real Estate.
DCCI highlighted an estimate by EGF-Hermes, which said 40,000 to 50,000 units will be supplied annually in Dubai. According to the report, rising income levels is another key driver for the real estate industry.
For the medium term and during the period 2000-2006, Dubai GDP grew by cumulative annual growth rate (CAGR) of 13 per cent in real terms while population grew by CAGR of nine per cent (as compared to seven per cent for the long term). Therefore, real per capita income grew by CAGR of four per cent during this medium term period.
Impressive growth
"This is an impressive income growth that has positive implications for real estate demand in Dubai," the report said.
The study stressed that the relatively low cost of mortgage financing in Dubai, compared to personal loans, has fuelled demand for real estate. Source
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