Sunday, July 19, 2009

New Dubai area, much in demand

According to the leading property services company, Asteco, residential units in the New Dubai area have witnessed an increase in demand during the second half of this year.

The sale prices of villa and apartments across Dubai have decreased by 13 percent and 15 percent respectively, which signifies negative growth, in comparison to quarter-on-quarter decline from Q4 2008 to Q1 2009.

However, the report pointed out that the Palm Jumeirah and Dubai Marina, which constitutes the New Dubai area, has reported a good increase in sale prices during the second half of this year.

There was a 20 percent increase in villa prices, while the apartment prices increased 7 percent. With more properties being delivered, the owners are hesitant to sell at lesser cost, and therefore are leasing out their units. Therefore, apartment and villa rental rates on The Palm dropped by 12 percent and 25 percent respectively, reports Asteco.

Vincent Easton, the Sales Director at Engel and Volkers, an estate agency in Dubai, said that during the last couple of months, distressed sellers have been completely removed from the market, while the rest of the owners are hesitant to drop below a certain price level.

People are even willing to commute to Abu Dhabi from the Jumeirah Lake Towers and Discovery Gardens, he pointed out.

The Asteco Managing Director, Andrew Chambers, said that the demand has been mostly for the single and double bedroom apartments, and for triple and four bedroom houses in the New Dubai area.

1 comment:

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