Monday, April 29, 2013

Dubai records 63% growth in property transactions in Q1 2013

The total value of real estate transactions in Dubai grew 63 percent to Dh.44bn during first quarter of 2013, in comparison to same period last year, revealed data from Dubai Land Department (DLD).

The transaction numbers touched 14,260 at a rate of 223 per day and 32 per hour with “impressive” growth registered in the residential and commercial sector.

Dubai Marina took the lead in terms of value of transactions, registering 2,079 transactions worth Dh.3.5bn as total value of residential transactions touched Dh.13.9bn.

Last year, the total value of property transactions grew 8 percent, touching Dh.154bn, in comparison to Dh.143bn in 2011.

The UAE nationals topped list of investors in 2012, while Indians were the second topmost among list of property buyers.

The total investments by GCC, Arab and Foreign investors stood at Dh.58.6bn with total number of investors touching 18,635, while foreign investors number 13,573 invested Dh.36bn in the market.

The Director-General of DLD, Sultan bin Mijrin, said that Dubai real estate market has shown durability and flexibility when it comes to dealing with requirements of investors, with the past three months showing a new breed of investors entering the market in order to capitalize on opportunities that have arisen on the eve of price correction seen in the market over the past two years.

Leading global property consultancy, Jones Lang LaSalle, in its first quarter report this year, said that selling prices of Dubai properties were 18 percent higher in the first quarter of this year, in comparison to the year earlier.

The real estate prices and rentals in Dubai grew for the 16th consecutive month in March, continuing steady recovery in the sector, said Deutsche Bank.

Friday, April 26, 2013

Growth in real estate prices reflect strong investor confidence in Dubai

Real estate prices and rentals in Dubai have grown for the 16th consecutive month in March this year, continuing their steady recovery in the sector, and highlighting the return of investor confidence in the emirate, a report said.

The property rates have grown by 1.5 percent from February to March, with increases recorded across most areas. However, prices and rental values remain considerably below their peak 2008 levels, say Deutsche Bank.

The apartment prices were 43 percent to 61 percent below their peak levels, while villa prices were in the range 12 percent to 49 percent below peak prices, the report said.

The rental values showed similar trends. The figures indicated a 6.2 percent year-on-year growth, with apartment prices having shot up 1.5 percent, while villas were up by 1.6 percent.

However, the report said that growth in prices and investor confidence continues despite increase in supply. Since the second half of 2011, Dubai has seen a surge in project launches, particularly from master developers such as Nakheel, Emaar and Damac.

Nakheel has begun several projects, while Emaar recently pre-sold four projects with 1000 units sold overnight at 40 percent premium to market prices, thereby reflecting trends noticed around the world.
Emaar has now announced another new project in Downtown Dubai, which has gone on sale, the report pointed out.

The investor confidence in Dubai market continues to remain strong, while master developers continue to accelerate their project launche, said Athmane Benzerroung, Research Analyst.

Monday, April 22, 2013

Emaar’s new Sky Collection unveiled in Downtown Dubai

Emaar Properties, leading Dubai developer, has revealed details of a new series of luxury apartments called Sky Collection, which occupies the upper storeys of a high-profile development in Downtown Dubai.

The homes will be on the topmost levels of the 60-storey towers that constitute its ‘The Address Residence Fountain Views Project’, overlooking the Burj Khalifa and much of Downtown.

The developer has been offering potential buyers the choice of three and four bedroom apartments, three and four bedroom duplex apartments and four bedroom penthouses, ranging in size 2000 sqft to 17000 sq ft.

The Developer has asked investor to first register an interest online. Emaar will contact select customers directly will invite them for a private preview and sale.

The Managing Director of Emaar, Ahmad Al Matrooshi, said that The Sky Collect at The Address Residence Fountain Views is meant for interested customers who value an unmatched luxury lifestyle in one of the most sought-after destinations in Dubai.

He further said that the Sky Collection would serve as a valuable investment proposition suitable for families as first-homes and for international leisure and business visitors looking for a second home or extended stay in Dubai.

The Sky Collection comprises spacious, fully furnished luxury residences, serviced by The Address Hotels and Resorts, Emaar’s hotel brand. The Address Residence Fountain Views is directly linked to the Dubai Mall through the metro link.

Emaar had earlier unveiled a Sky Collection within The Address The BLVD, which had drawn strong investor response in Dubai and in international markets. Emaar also recently launched the Mira townhouses in Reem and The Address Residence Sky View in Downtown Dubai, which also drew an overwhelming response.

Downtown Dubai is a thriving mixed-use community with world-class hotels, must-visit tourist attractions, world-class hotels, shopping malls, landscaped gardens and other tourist attractions.

Tuesday, April 16, 2013

Mira homes sold at 50% discount rates

Emaar Properties has already sold more than 188 homes of a project to be built in Dubai, at almost 50% of the prices for homes being sold in nearby neighbourhoods.

There were long lines of potential customers at Emaar’s sales centre, similar to the scene before the 2008 property crash in Dubai wiped 65 percent off home values as speculative demand dried up. Reports said that police were called to control the crowd, as the homes were sold on first-come first-serve basis.

Emaar offered townhouses for about Dh.550 per square foot, said Rami Abi Faraj, Manager, Better Homes.
Properties in Arabian Ranches close to where the townhouses will be built, at selling homes at Dh.1000 per square foot. Emaar did not respond much to queries about prices at Mira.

One of the potential customers contacted by the media, said that the homes were amazing at very good pricing, and that Emaar may be offering these prices to begin the project.

Nearly 40,000 homes are due for completion in Dubai over the next two years, constituting 11 percent of current supply, said Jones Lang LaSalle in their report.

Further, this year, 28000 homes are likely to enter the market, including 29 Boulevard towers in Downtown, Balqis Residencies on The Palm, the Centrium project in IPMZ and Silicon Gate in Dubai Silicon Oasis.
Majority of the upcoming residential supply this year will be in Dubailand, Business Bay and Dubai Sports City, the report said.

Mira forms the first phase of the Reem development, which also includes schools, parks, shops, a cinema and an amphitheatre, among other attractions.

Friday, April 05, 2013

Dubai real estate sector records surge in rentals in Q1 2013

Improved confidence in Dubai economy and real estate sector is pushing up rentals further in some areas in Dubai during the first quarter of the year.

According to latest report by Asteco, rentals for apartments and villas in Dubai have grown by 3 percent and 4 percent respectively during the period January to March this year, in comparison to same period last year.
Over the past one year, the average rental increases stood at 19percent for apartments and 21 percent for villas. The International City saw considerable hike in rentals where the rental for a double bedroom unit increased by 8percent touching Dh.40,000, while most other areas recorded increases of about 3 percent.
Cluttons, the leading real estate specialist in the UAE, also noted the same trend, citing upward movement in rentals, driven by renewed economic confidence.

There has been a healthy growth in rents recorded at the lower end of apartment market, as growing rental values drive tenant to low budgetary options, said Richard Paul, Head of Residential Valuations at Cluttons, UAE.

This year, increase in rentals has been noted in commercial spaces too. According to Asteco, the Dubai Investments Park has recorded 13 percent rise in rentals, while Jumeirah Lakes Towers saw 20 percent and Tecom witnessed 25 percent surge in rentals respectively.

A senior consultant for residential leasing and sales at Better Homes, Robert Kerr, said that rent increases is across the board. There has been an increase in rental in general, but it is only for the high-end and desirable properties.

Meanwhile, with increase in rentals, sales prices for apartments and villas in Dubai have also grown by 12 percent on an average for apartments and 5 percent for villas, Asteco said.