New homes pull in sales values

20.10.2014
With rents also softening in key freehold clusters in the city, it is the first time since 2012 that both sales and leasing values hit a lower note. Apartment sales values in Dubai followed suit of rentals, dropping 1% during the third quarter, Gulf News reported.
“Sales prices may soften further in the fourth quarter of 2014 as new supply enters the market”, according to a report released by Asteco. The current soft cycle in property values would thus force potential buyers to consider getting in now or whether to hold off until there is a marked dip in asking prices."
With rents also softening in key freehold clusters in the city, it is the first time since 2012 that both sales and leasing values hit a lower note, according to Asteco, adding this is “a result of a natural adjustment to ongoing new supply entering the market”.
A shift towards the mid-market can certainly help with the volume of transactions. Dubailand is a community that has premium offerings such as Akoya and the more recently announced Indigo Zen, but earlier sustainable projects such as the ones from Diamond Developers as well as Dubai Lifestyle City and Falcon city are priced closer to the luxury segment prices — north of AED1,100 per square foot,” said Sameer Lakhani, managing director at Global Capital Partners.

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