Dubai tycoon Sajwani ‘amazed’ at property bounce, but analysts say

The billionaire behind one of the UAE’s biggest property developers is taking the company he founded private, saying Dubai’s nascent real estate rebound is here to stay.

“Amazing,” Damac Properties founder Hussain Sajwani said on Monday when asked to describe the recovery in Dubai’s bust-to-boom property sector, which is on an upswing after years of price declines and rampant oversupply.

“I’ve seen Dubai over the last 20 years, and it’s gone through cycles,” said Sajwani, a veteran of the sector known for his brash marketing campaigns and luxury-on-a-budget developments that have shaped the Dubai skyline.

“I don’t think this is something temporary. This is something long term,” the realtor said.

Residential real estate prices in Dubai have been rebounding strongly from a record low, on the back of pent-up demand, improved investor and consumer sentiment, a rebound in oil and gas prices and a gradual macroeconomic recovery, according to S&P Global Platts.

Dubai saw its “best third quarter in history” for property sales transaction value, according to the Dubai Land Department. The agency said September saw the highest value of real estate sales in one month since December 2013, as Dubai shunned lockdowns, ramped up vaccinations and enacted new policies to entice people to stay through the depths of the pandemic.

While many countries re-imposed lockdowns and travel bans over the last year, Dubai stood out even among its neighboring emirates by allowing hassle-free travel for most destinations. It’s also eased business and visa regulations, bringing a host of digital nomads into the emirate after its population dropped by nearly more than 8% in 2020 due to the pandemic.

It is currently hosting the mega-event Expo 2020, which has already seen hundreds of thousands of visits. Dubai has also hosted major events like the IDEX defense fair and Gitex technology conference, several concerts and sports matches, and will host the Dubai Air Show and ADIPEC energy conference in November.

Sajwani said people came to Dubai during lockdowns in their countries and found safety, healthcare, vaccines and security, making the city a more attractive place to invest. “Dubai is really booming from that point of view,” Sajwani added.

Renters in Dubai have felt the sharp rise in the market, too. Many young professionals have posted ads looking for rooms in shared homes, leaving their apartments as they say their landlords are increasing rent prices by 30% to 50%.

Sajwani’s comments are a major turnaround from the tycoon’s last assessment on the market. In 2019, he made headlines by calling for an immediate halt to construction, warning Dubai would face “disaster” if oversupply…