Friday, January 15, 2010

Dubai records stability in apartment, villa prices: Asteco Report

Dubai has recorded stability in selling prices of apartments and villas for completed developments towards end of 2009, with no changes in prices during the third and last quarter of 2009.

According to Asteco, the largest property services company in the UAE, the Dubai residential and commercial property market witnessed an increase in transaction during the second half of 2009 as the economy had picked up and there was an improvement in mortgage availability.

Among the developments monitored, the Palm Jumeirah was able to hold values to the maximum, Asteco said.

Being an iconic development, and with constant improvement in infrastructure and completion of residential and hotel developments, the Palm Jumeirah is one of the most sought-after destination, said Elaine Jones, the Asteco Chief Executive Officer.

The other areas that have been of considerable interest to Asteco throughout 2009 are the Dubai Marina, Downtown Burj Dubai, Jumeirah Beach Residence, Arabian Ranches and Springs, as they offer lifestyle communities with more accessibility to leisure, entertainment, retail and education.

The average selling price of apartments in Dubai stood at Dh.950 in 2009, a decrease by 16 percent since Q1 2009, and Dh.1000 per square foot for villas with a decrease by 9 percent change since Q1 2009, the Asteco said in its report.

Business Bay and International City recorded maximum decrease in apartment sale prices since Q1 2009 with 23 percent fall. The prices at Green Community and Palm Jumeirah have remained stable with no change since the beginning of the year.

However, the year-on-year change from Q4 2008 was less by 46 percent in 2009 in comparison to that recorded in Q4 2008 and Q1 2009. This is followed by Arabian Ranches with 29 percent. However, the Palm Jumeirah and Springs recorded a positive growth with 20 and 21 percent respectively.

Similar to the apartments, the price decreases were most substantial between Q4 2008 and Q1 2009. The average year-on-year decrease amounted to 49 percent since Q4 2008.

Dubai has recorded decrease in rentals by 24 percent for apartments and 18 percent for villas on an average throughout the year of 2009, as said by Asteco.

Apartment rental rate decreased 6 percent in Palm Jumeirah, which recorded the minimal decrease, followed by a decline of 15 percent by International City since Q1 2009.

The villa leasing rates in Jumeirah and Umm Suqeim saw the highest drop with 30 percent. The Palm Jumeirah was the only area which to record an increase in villa rentals by 4 percent on an average due to lack of availability, as several owners purchased property to live in or to keep as a holiday home.

In comparison to Q3 2009, the rental declines slowed down during the last quarter with overall decrease of 2 percent recorded for apartments and 1 percent drop for villas. Although the rates picked up slightly in October, the negative media attention which Dubai received in November, recorded a decline in rental once more.

1 comment:

dubai rent said...

It will probably be very difficult to find out what is really happening there, but it can not be good news. Many, many similar projects in the region are currently being suspended, stopped, canceled, etc. Most of these projects are far healthier, more realistic and more feasible than Blue City. And many of them do not depend that heavily on the international bonds and financiers.