As a further testament to the recovery in Dubai, we are seeing more and more big developments being launched in the emirates once again. Emaar Properties (DFM: EMAAR) has just announced plans for a five-star-rated project that will have 200 luxury hotel rooms and 542 serviced apartments to go on sale on September 22.
It is no secret that too many big developments like that were a main contributory factor in Dubai's meteoric crash which saw its property lose value faster and deeper than any other country in the world during the recent financial crisis. In fact, Emaar was the developer behind the Dubai Burj Khalifa, the world's tallest skyscraper at 2,723 feet, which became more famous because Emaar was forced to continue building such a magnificent piece of history even as Dubai was crumbling around its foundations. Let's just say the views weren't what Emaar envisaged when it began sales.
Now they are bouncing back with another multi-billion dollar development. Dubai's residential sector may have had a catastrophic death in 2009, but it was still left with some of the biggest and best resorts and hotels in the world, and with the global tourism recovery now well underway demand is once again increasing for such spectacular accommodation.
The new hotel, which will be built in Dubai's downtown area will be Emaar's first major hotel development since the crash erupted in 2009, but its third this year after it launched 2 residential developments in the last few months: 'Panorama at the Views' - a high-rise development consisting of over 200 luxury apartments and Alma 2 in the Arabian Ranches residential complex.
Emaar Retail chief executive Arif Amiri told a press conference that Emaar was doing the project now because it was "an opportunity to capture the interest we're seeing from Dubai, (the Gulf), Middle East, Indian subcontinent, China and Europe."
Emaar “believes Dubai's real estate market is on the rise again,” said Amin, adding that the market is slowly returning to normal levels after the crash.
Amin told reporters sales at the Panorama in the first half of this year were "five times more than the same period last year."
Emaar reported in July that its second-quarter profits had more than doubled. Revenue from apartment sales for the six months ending June 30 was 975.5 million dirhams ($265.5 million US) compared to 640.5 million dirhams ($174.3 million US) a year-ago.