Monday, November 02, 2009

Completed properties with access to basic amenities preferred

Asteco, the largest property services company in the UAE, has reported that apartment sales for completed projects in the prime Downtown Burj Dubai area have seen maximum increase of 8 percent on quarter-to-quarter basis.

In its third quarter report on Dubai property market, Asteco said that sales prices for apartments in Downtown have grown from Dh.1200 per sq ft during the second quarter, to Dh.1300 per sq ft in third quarter.

Across the whole of Dubai, sale prices for completed apartments and villas have increased only slightly with an average of 1 percent and 3 percent, compared to the 2nd quarter report. Rental charges have seen minimal change during the same period, the report said.

Asteco CEO, Elaine Jones said that both Downtown Burj Dubai and Jumeirah Beach Residence are fully established communities that are highly desirable, which is exactly what the market is seeking. A completed tower is no longer sufficient, if it does not form a part of integrated community with sufficient convenient access to hospitals, schools, transport, leisure and entertainment amenities. As for villa communities, The Springs and Arabian Ranches are doing well.

The property market analysis by Asteco has revealed that demand is high mainly for smaller units such as studios, single bedroom apartments, double bedroom villas or townhouses. Overall, however, apartment and villa rental rates have seen minimal changes.

At present, average rental rates for studio apartments are Dh.45,000, while that for single, double and triple bedrooms are Dh.76,000, Dh.103,000 and Dh.139,000 respectively. Villas and townhouses are available for an average of Dh.117,500 for double bedroom, Dh.180,500 for triple bedroom and Dh.227,500 for four bedrooms and Dh.278,500 for five bedroom units.

According to Asteco, majority of inquiries are for Jumeirah and Umm Suqeim where tenants are seeking 3 bedroom units in the range Dh.150,000 and Dh.180,000.

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