Tuesday, July 03, 2012

Dubai real estate market exudes optimism: Asteco


The outlook of the Dubai real estate market for second half of the year seem quite optimistic, with a steep increase in renting and purchase during second quarter of the year, said Asteco, the leading Dubai-based real estate services provider.

Commenting on the status of Dubai real estate market during the period April to June this year, Elaine Jones, the CEO of Asteco, said that after three years of declining rates and limited sales activity, the property market is now on way to recovery, with established communities showing increased values and higher transaction volumes.

The apartment rentals and sales prices have gone up by 10 percent and 9 percent respectively, while villa rentals and sales prices have grown by 13 percent and 16 percent respectively.

Apartments in prime localities such as the Dubai Marina district and Downtown Dubai have been most sought after, meeting a 10 percent growth, during the second quarter, with double bedroom apartments costing Dh.90,000 to Dh.120,000 per annum.

Villas on the Palm Jumeirah, costs Dh.17,200 per square meter, followed by Dh.10,750 per square meter at the Jumeirah Islands.

Rentals in affordable communities such as the Discovery Gardens, too, witnessed a nine percent growth quarter-on-quarter, while there was no rental decline reported in International City, during first half of 2012, Asteco reported.

During the next half of the year, increase in sales prices are likely, particularly for quality developments. Further, there will be increased demand from overseas buyers seeking to escape economic woes in the eurozone, and political instability in other parts of the region, Asteco said.

Dubai has a total of 9.1mn square meters of office space, while another 770,000 square meters of new space will be released in the second half. Nearly 5000 apartment units have been handed over with majority located in Downtown Dubai, Dubai Marina, Dubai Silicon Oasis, Sheikh Zayed Road, and International City.

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