Tuesday, October 09, 2012

Housing units in International City records 40% growth in prices

The prices for apartments in the International City have grown by more than 40 percent over the past one year. The prices had earlier dropped below their 2002 launch rates.

The prices for studios are in the range between Dh.250,000 to Dh.270,000 in October 2012, marking an increase from Dh.150,000 to Dh.170,000 during same period last year, reveals latest data.

While studios were sold for Dh.220,000, single bedrooms were sold for Dh.320,000 during the launch, with property owners offering 10 to 15 percent discount to lure buyers.

The studios and single bedrooms in Spain and England cluster are now on the highest asking rate of Dh.265,000 to Dh.270,000 and Dh.365,000 to Dh.370,000 respectively.

On the other hand, few units are still being sold at lower prices. According to property agents, these units require renovation, and hence prices are low. Moreover, the apartments at International City are mostly being purchased for staff accommodation than for individual use.

According to data by Dubai Land Department, nearly 1730 transactions worth Dh.523mn have been registered in the International City. While International City recorded Dh.2.5bn worth registrations in 2009, the value fell to Dh.500mn in 2011.

Launched in July 2002, the International City project comprises a residential district, and a central district. The residential district spans an area of 300 hectares and comprises 387 buildings (including residential and retail units). The Central District covers 21 hectares with 34 plots.

The DLD Director General, Sultan bin Mijren, expressed an improvement in overall market sentiment in Dubai property market, thereby indicating revival of Dubai real estate market, with prices having gone up in certain locations.

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