Sajwani said in an interview with “Al Arabiya” on the sidelines of the World Economic Forum in the “Swiss” city of Davos, that the stage of excess supply in the Dubai real estate market will reduce its impact with the recent government measures.
He referred to important measures taken by the government, such as the formation of the “Supreme Committee for Real Estate Planning” in the Emirate of Dubai headed by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, which held meetings with investors.
He explained that the state worked on two axes: The first is to reduce the supply of real estate. Indeed, government companies have started this in the market.
He also pointed to another important axis is the increase in demand for real estate, through the introduction of a five-year visit visa and a ten-year visa for foreigners, considering that these measures will contribute to absorbing the excess supply and increasing demand for real estate.
He said that the past year witnessed a decline in the launch of new real estate projects.
He added that “the real estate market has reached the bottom, and we need two to three years with a maximum return” for the rises.
He considered that the market, despite the declines, is still strong, with sales exceeding 20 thousand units in the past year, stressing that the current prices are a good opportunity to buy.
On the decline in “DAMAC” revenues in the first 9 months of the year 2019 to 2.8 billion dirhams from 5.2 billion dirhams in the same period of 2018, Sajwani said that “DAMAC has accompanied the five-year boarding cycle in the real estate market that started since 2012, and therefore we expected that Weakness begins in 2017. ”
He said it is natural for revenues to decline with the launch of two projects in 2018 and one project in 2019, compared to the launch of 10 projects in previous years.
He explained that the expectations for the end of the recovery cycle had prompted DAMAC to “focus on strengthening its financial position and focusing on real estate deliveries.”
He explained that the schedule of real estate deliveries from the company included 6 thousand real estate units last year, 8 thousand units this year, and 9 thousand units for the coming year, stressing that these deliveries mean bringing in cash for the company.
He stressed the importance of the financial solvency of the company, and its customers and investors, explaining that “DAMAC” requires payment of 20% of the value of the apartment and a minimum of 14% for some exceptions, while some companies sell the apartments in advance of 5%, meaning that you buy an apartment with a million dirhams and pay 50 thousand dirhams in advance.
Asked about the impact of the World Expo Dubai 2020 on the real estate market, Sajwani said that the Expo will start in October 2020 and will have a positive impact on the hotel sector in 2021 and on the real estate sector in 2022.
He explained his view that attracting the huge number of tourists to this exhibition will generate an idea of an attractive country to invest in a safe environment, and enhance their return to buying real estate.