The value of completed buildings in Dubai surged by more than 220percent, during the third quarter this year, touching an all-time quarterly high, according to statistics by the Dubai Municipality.
The statistics were published in the Dubai Statistics Centre website, which said that the values increased by more than 220 percent, touching Dh.14.07bn, in comparison to the previous quarter this year, when the value of completed buildings were just Dh.4.4bn.
Moreover, this value is more than double the value of buildings during the same quarter in 2010, the statistics revealed. Therefore, this marks an all-time quarterly high for value of completed buildings since the year 2005, as per Dubai Municipality data.
The surge in values of completed buildings may be largely due to the huge surge in value of industrial buildings, and sure in values of public amenities completed during the quarter.
This increase in activity is a reason to celebrate for the industrial property market in Dubai, says Cluttons, the real estate specialists in their latest Dubai property market update.
Moreover, during the third quarter this year, there has been increased demand from international light industrial and logistics occupiers who entered the market seeking better quality units, said Cluttons, the real estate specialists in their latest Dubai Property Market Update.
Meanwhile, the number of completed buildings in Dubai, grew by more than 15percent, touching a total of 736 from 638, quarter-on-quarter. However, it was 17percent lower than the number of completed buildings during the same quarter last year.
The last time when the value of completed buildings in Dubai hit a low, was during the fourth quarter of 2009, when 614 buildings worth Dh.4.32bn were completed. Thereafter, the value of completed buildings has always seen marked improvement.
While last year Dh.30.8bn worth of buildings were completed during the first three quarters, this year, at least Dh.24bn worth of buildings have been completed as per data.
Cluttons revealed that a steady demand has been witnessed for high quality residential buildings in the Emirates Living, Marina, Downtown, Jumeirah, and Arabian Ranches. There is also demand for high quality office space in Dubai, especially from large space users seeking to consolidate from an old obsolete space spread around the city, to a modern, efficient office space. This trend is likely to continue, said Cluttons.