Sunday, July 15, 2012

Dubai developers coming up with series of new launches in the market

The developers in Dubai are planning to test market sentiments with a series of new launches, for the first time since end of 2008, despite the imbalances in demand-supply equation, said a recent media report.

Over the past four months, five developers have released fresh stock into the market, with latest being in Dubai Festival City, offering 24 townhouses at prices in the range Dh.4.8mn.

Earlier, Emaar and Nakheel announced residential launches within their existing developments, while Al Barari, came up with its limited supply of 33 premium villas. Also, there was the launch of a mid-priced offering in the form of Ritaj master-development in Dubai Investments Park.

All these launches attribute the gradual return of investor confidence in the local real estate market, wherein residents are seeking homes in a still soft market.

The latest launch in Dubai Festival City, within the Al Badia Cluster, is its second ever. Three years ago, nearly 10 townhouses were sold, although that was not an official release of a particular phase. According to Ian Plumley, General Manager for property sales, it was done to meet the needs of some long-term tenants, and hence the properties were sold to tenants who were living in there.

A major positive aspect for the development here, is that the investors can take immediate possession of their properties, as they are all completed, and this is a first for new properties in Dubai, said Mario Volpi, Head of residential sales at Cluttons.

Asteco reported that villas at Arabian Ranches were 16 percent higher during the second quarter. The Springs recorded 14 percent gain, while it was 11 percent at Jumeirah Islands. The increases in other villa dominated developments in the emirate were in the range 6 to 8 percent.

Although majority of new launches cater to high-end investor, maximum activity is for properties in the Dh.1mn to Dh.2mn category. At least 25 percent of properties fall into this category. According to Land Department, the Burj Khalifa sub-market, including the Downtown, Business Bay and Old Town, is the most sought-after area, with 50 percent of all transactions happening in these areas, Volpi said.

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