The stocks of Dubai reached to a figure that’s the highest in last 3 years on today, thanks to the announcement of Emaar Properties stating that all apartments offered at its new development project have sold out within a single day. This has fuelled the optimism in investors that the property industry of Emirates is showing signs of further recovery now.
The benchmark index of Dubai, the DFM General Index jumped up by 1.5% and is currently at 1819.01. This marks the index’s highest figure since April, 2010. Today, around 343 million shares were changed hands, which is more than double of the 12-month average. The Relative Strength Index of the DFM General Index has increased to 80 on today. Incidentally, a reading over 70 denotes that an index or security is set to decline. This gauge was the best performing one in the entire Gulf Cooperation Council in 2012.
Emaar is incidentally the developer of world’s largest tower and it has now surged to its highest level since October, 2009. Its latest development project named as The Address Residence Fountain Views will have a total of 280 apartments and right at the initial offering, all of the available units were sold out. This luxury hotel project is going to be located in Central Dubai and it was announced only last week. Incidentally, in the last few weeks, the demand of the high-end properties has seen a high in Dubai. The local market is currently recovering from the 2008 price crash that resulted into house prices tumbling by more than 65%. In 2012, the economy of Emirates has seen an increase of 5%, marking its fastest speed since 2007, as far as Government forecasts are concerned. Emaar is expected to post profit figure of 16% for last year.
According to the Menacorp’s Managing Director, Nabil Rantisi, this sale solidified the fact that the sentiment in Dubai is currently pretty positive and hence, the real estate sector will be benefitted further as well. Nabil added that the sale, on a whole, will help overall Emirates economy too.
The share prices of Deyaar Development also increased by 1.4% on today. Each share of Deyaar now costs 37.5 fils, its highest figure since 17th January. According to the estimates of the economists, the company is going to post a profit increase report of 43% for 2012.