Monday, March 26, 2012

Dubai real estate market remains steady in first quarter 2012

According to the first quarter report 2012 by Asteco, the UAE residential property market has seen mixed results during the quarter. Dubai continued to remain steady building on last year’s trend of stability, while Abu Dhabi witnessed considerable declines with improved quality supply.

The rental rates for villas and apartments in Dubai grew by 1percent during first quarter this year, in comparison to fourth quarter of 2011. However, selling prices of villas grew by 4percent during the same period, owing to large number of owner-occupiers in areas such as Jumeirah Village, Emirates Living and Arabian Ranches.

The average annual rental for a single bedroom apartment in the Downtown Dubai was Dh.70,000 during first three months of this year, marking a 5percent growth from previous quarter. The rental for single bedroom apartment in Jumeirah Lakes Towers grew by 3percent.

The average annual rental of a four bedroom villa in the Meadows grew by 3percent, while the rental for a four bedroom villa in the Arabian Ranches grew by 2 percent in comparison to previous quarter.

However, in terms of selling prices of apartments, Discovery Gardens saw further declines, owing to huge amount of supply, but prices were stable overall.

As for the commercial market, rental rates across the office market in Dubai dropped by 1percent on average, despite healthy enquiry and transaction levels, as pending and forthcoming supply continued to weigh. Rentals in Bur Dubai fell by 6percent, but popular business districts with limited commercial space, showed better and higher occupancy rates.

There has been marginal decline of 2percent in office sales on an average, owing to low transaction levels. The biggest declines were noticed in Business Bay and DIFC, wherein the prices fell by 7percent and 6percent respectively.

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