Dubai's building industry is finally starting to show indications of a long-awaited comeback. Real estate developers are developing new developments in reaction to growing real estate prices, which have been boosted by the emirate's economic recovery from the COVID-19 epidemic.

On May 20, Nakheel declared its first new project launch after years, providing the strongest indication yet of the market's resurgence. It intends to create Murooj Al-Furjan, a neighborhood of 418 villas, close to the existing Al-Furjan community in the Jebel Ali region. On May 23, the developer announced Dhs800 million ($218 million) in sales and sold out the first phase's 217 villas in four hours.

“Companies like as Nakheel, Emaar, and Meydan are in the early phases of developing new projects,” says Colin Foreman, a senior business analyst at GlobalData's MEED. These designs feature villa communities and waterfront apartments, two-property types which further continue to function well and are in high demand. Villas, in particular, are doing well.”

“While opportunistic or strategic projects in established locations with validated demand would be the first to be opened,” Foreman continues, “proposals are also being taken into account for strategic projects in newer areas of the emirate, like the Dubai Waterfront and Palm Jebel Ali area on the coast close to the Abu Dhabi border.” Although development has begun in such locations in the past, there are few actual settlements. As Dubai's centre of gravity continues to move south, because of Al-Maktoum airport, the Expo 2020 site, and the Dubai South expansion, the region may be suitable for development efforts once more.”

With the property market showing signs of revival, it is expected that significant infrastructure projects necessitating the participation of multinational contractors would go forward again.