Weekly Dubai real estate news digest. Issue 64

21.09.2014
Making headway in realty sector
Welcome to the sixty-fourth issue of Market Insight, your weekly guide to what's happening in the Dubai real estate market.
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MARKET INSIGHT. Weekly guide to Dubai's property scene
Issue 64 |  September 21, 2014

Making headway in realty sector

Dubai's real estate continues to make a compelling case for investors. Since September last year, Dubai has gone through a phase of fired-up growth in property values, led by highly speculative buying that was created around the aura of the city winning the rights for the World Expo 2020. Between November and late January, asking prices being demanded shot up by 20-30%. 

Moreover, the emirate has seen its real estate market stabilising. "Property prices have grown steadily since 2009 but the increase in regulation by Dubai Land Department has led to a more stable growth pattern," said Hussain Sajwani, chairman, Damac Group. "Dubai still remains one of the most affordable metropolitan cities anywhere in the world."

Property prices may still be high, but buyers are increasingly becoming more value conscious, a sentiment that the market has begun to respond to. The shift towards value buying is reflected in the latest transactional data for the city's freehold clusters - Silicon Oasis, Sports City and Jumeirah Village. A Knight Frank report revealed that properties with a price tag of AED10 million and more saw a relatively modest increase of 6.3% in asking values while mainstream locations saw gains of 24% during the second quarter.

Clearly shifting towards being a buyer's market, there has also been an increase in supply with developers announcing new projects everyday. Omniyat plans to build two new towers in Maritime City and Business Bay in addition to its luxury flats on the Palm. Additionally, freehold status will now be granted to some flats sold in Mirdif, giving buyers additional options. 

Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. There has been a clear evolution in the way the Dubai real estate market is moving forward. There is now greater focus on investor needs and buyer requirements rather than developers having the upper hand. There have also been added measures to help bring about stability in a fast-growing market. It is an interesting time for property in Dubai and we can only expect greater improvements to come as we move forward towards the Expo 2020. 


Sincerely,

Pashma Manglani

Editor


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Dubai still fastest growing residential market 

The surge in Dubai's residential property market may have slowed down considerably in the last five months, but there is still enough momentum built in to ensure it was the fastest growing for a fifth consecutive quarter.

In the 12 months to June this year, its residential space was up 24%, comfortably above second and third placed Turkey and Ireland, which were up 14% and 12.5% respectively, according to the global consultancy Knight Frank. The UK was in fifth spot. 

 

Read more on Gulf News

Freehold opportunities now in Mirdif

One of Dubai’s biggest commercial developers is turning its attention to building freehold villas around some of its office schemes, The National reported.
 
As the Dubai real estate market flourishes and the demand for investment increases, developers are now looking out for other locations other than the established freehold areas for their new projects. Tecom Investment recently under took a villa project on Umm Suqeim Road and Jersey Properties launched an apartment cluster in Mirdif, according to Gulf News. 

According to the developer, this is the first time a full freehold status will be offered to units sold in Mirdif. Prices at Mirdif Tulip start at AED1.1 million for a one-bedroom unit and tagged between AED1.8 billion and AED2.2 million for a three-bedroom. 

 

Read more on Gulf News

Expo provides impetus to market

Dubai Expo 2020 has pushed developers to launch 42 development projects in the city this year, which include 17 villa and townhouses projects, reports Emirates 24|7.

According to the data report by Reidin.com, the 42 development projects comprise of approximately 11,250 units. The 17 villa projects house 3,041 units, whereas the remaining 25 residential complexes house 8, 209 apartments.

Renowned private and government owned developers like Emaar Properties, Nakeel and Damac Properties have been instrumental in the various projects launched this year.    
 
Global Investment House, a Kuwait based company, said that a flourishing economy and a stabilising market is the force moving the UAE’s real estate market and the Dubai Expo will continue to be the main stimulus for the industry.

At the same time, Dubai Land Department (DLD) has reported the registration of 6,636 properties across the Emirate in the first half of 2014.

 

 

Read more on Emirates 24/7

Price most important factor for investors

As per standard principles, location is the most important factor concerning property; however Dubai is proving to be an exception where price is being considered the key element followed by location, reports Emirates 24/7.

According to a new survey carried out by a UK based online estate agent, eMoov.co.uk, property buyers are more concerned with the location of the property rather than the property itself. 75% of the people surveyed said they favoured a “perfect area” as opposed to a “perfect home”. The survey also revealed that good neighbors, good transport connections and local job prospects were also important considerations.

Russell Quirk, eMoov.co.uk‘s chief executive officer stated in his blog that people, despite all their different deliberations, decide on a property primarily based on the location. On the other hand, buyers and investors in Dubai consider the price of the property first. Masood Al Awar, Chief Executive Officer at Tasweek said that market research reveals that the second factor looked at by investors is the return on their investment, whereas end-users look at quality.

Property prices have increased by 20% in Dubai but central luxury residential property remains most affordable in relation to other global cities, according to Knight Frank’s Wealth Report 2014.

 

Read more on Emirates 24/7

Omniyat marches forward with new apartment blocks

The Dubai developer Omniyat plans to build two apartment blocks in Maritime City and Business Bay area as it seeks to return to residential development.

The company will showcase a 48-storey tower in Dubai Maritime City and a 25-storey twin tower project in Business Bay area at the Cityscape property show next week.

Omniyat plans to market the 225 off-plan apartments at its AED600 million Anwa tower in Dubai Maritime City’s megaproject between Port Rashid and DryDocks World. Prices for the apartments will range between AED1,700 and AED2,200 per square foot. Contracts will be awarded in October and completion is scheduled for 2017.

At Cityscape Omniyat will also showcase its AED900m The Sterling block of 274 apartments close to The Dubai Mall. Omniyat said that the twin tower scheme will feature interior designs by the Hong Kong designer Steve Leung,

The two developments will be displayed alongside Omniyat’s AED2 billion One The Palm – expected to be the tallest tower on Palm Jumeirah – which it is developing in a 50:50 joint venture with the contractor Drake & Scull. 

 

Read more on The National

Have a question? Ask professionals! Email us and get qualified advice regarding your property needs.
 
Visit our stand 8F14 at the Cityscape Global exhibition in Dubai between 21-23 September 2014
 

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