Thursday, November 26, 2009

Prices of Dubai Marina units on the rise

The prices of the Dubai Marina apartments have grown by 18 to 38 percent during this year, revealed a real estate company.

The Head of Sales of Asteco, Vineet Kumar, said that single bedroom apartments at Dubai Marina are currently selling at Dh.1300 per square feet, an increase of 18 percent from Dh.100 per square feet sold during the beginning of the year.

The double bedroom apartments are now being sold at Dh.1250 per square feet, an increase from Dh.900 per square feet in January, while the triple bedrooms are sold at Dh.1250 per square foot, an increase from Dh.950 in January.

Single bedrooms measuring 850 to 900 square feet at Elite Residence and Dorrabay are now priced at Dh.1.2million, reveals Asteco’s report. In January 2009 this type of property was quoted as Dh.900,000, while similar apartments were priced at Dh.1.35mn in July 2008.

The double bedroom apartments at Marina Promenade measuring 1280 square foot is currently priced at Dh.1.6mn, while it as Dh.1.15mn in January.

A triple bedroom apartment in proximity to Jumeirah Beach Residence costs about Dh.2.37mn at present, while the same property was priced Dh.1.8mn in January.

However, four bedroom apartments have not seen much improvement in prices at present, and stand at Dh.975 per square foot, an increase from Dh.850 per square feet in January this year.

Demand for four and five bedroom apartments at Dubai Marina is much lower than that for triple, double and single bedroom apartments, as families have the affordable option of purchasing four or five bedrooms at villa communities.

The increased demand for smaller units at the Marina implies that such units command higher prices per sq. ft. than larger ones. The larger the size of an apartment, the lower is the price per sq. ft., said Kumar.

Figures by Asteco reveal that the value of apartments at the Marina has dropped by 15 to 60 percent since July 2008. However, certain towers in the Marina are still maintaining their values due to demand from investors and end-users, although the growth values in prices of few other properties in Dubai are slow. This is reflected in the fact that the prices offered in the market for the Marina have a wide range at Dh.850 to Dh.2000 per sq. ft.

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