Monday, October 15, 2007

Dubai will see 150,000 new residential units: Colliers

According to a report by Colliers International, the Dubai realty sector will shortly see 150,000 new residential units.

Out of these about 134,838 units will be constructed in various 'foreign ownership zones', with about 3415 units in Al Barsha and 4609 units in the Tecom areas. Thirty percent of the Dubai Marina is empty, with owners living in 33 percent of the houses, and the remaining 37 percent are rented out.

The report highlighted the fact that a lot of attention is being focused on the development of high-end products, while the low and middle-income segments are being given only minimal attention. Highlighting the consequences of an oversupply, the report mentioned that high-end residential segment may assume a top-down nature, leading to market-wide relaxation in lease terms, which are currently heavily weighed in favour of landlords."

The report stated that with the landlords getting more competitive, the yearly advance rent payments will be widely replaced by quarterly, or probably, by monthly advance payments within eighteen months. However, this will lead to tightening of regulations, governing the policies of real estate brokerage firms, to ensure the income security of landlords.

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