Saturday, September 01, 2007

Villas in Dubai record high premium and rent rates

The premium for secondary market sales of villas in The Palm Jumeirah have surged by 195 percent and The Meadows by 207 percent, during the second quarter of 2007, says a property management firm.

Al Raha Gardens Abu Dhabi

The Asteco's Director Consultation, Research and Valuation, Allen, stated "The demand for villas is high due to the average household size being high for both expatriate and nationals. Also, the villas are considered a luxury, and of better quality when compared to the apartments."
The average premium for villas was 79 percent during the same period last year, while the apartments premium was an average of 26 percent only.

Even rentals are on the increase with 12 percent rise in old and new Dubai areas, while the villas in Umm Suqueim and Al Garhoud areas witnessed 14 and 15 percent increase in rents. The villas in Jumeirah Islands and Hattan saw the maximum increase with 28 percent and 17 percent respectively.

Although the demand for rented and freehold villas is high, they are limited in supply. But, the rents are expected to drop in 2008 with the delivery of a bulk of new units, said Allen.

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