Thursday, March 03, 2016

Dubai housing rentals to soften further in 2017

The residential rentals are likely to soften further next year, as more supply comes through, said Haider Tuaima, Head of research at ValuStrat.

Overall, Tuaima expects the real estate market to stabilize in some areas in the short term, with slight residential price recoveries, while “soft upturns” are likely to be recorded during second half of this year, continuing into next year.

Tuaima also said that real estate market in Dubai has been much affected by decline in global oil prices, and the investors are beginning to lose interest. He said rentals have slowed down largely due to demand and supply factors.

The real estate market in Dubai is comparatively young and is yet to go through mature real estate cycles to allow us to analyze historic trends.

Tuaima said that according to figures quoted by Dubai Land Department, Dh.267billion has been invested into Dubai property market last year, marking 22 percent growth over 2014. The data analysis by ValuStrat Price Index also reveal that no effective change in value has been recorded in second half of 2015.

The latest research from Cire, UAE associate of Savills, says that as per Tuaima’s forecast, prices and rentals in residential market in Dubai may soften in next 12 months.

Rental rates for prime apartments like DIFC and JBR have recorded the highest decline of nearly 4 percent in 2015, while villa rentals fell by two percent to eight percent.

A senior economist at National Bank o fAbu Dhabi said that rentals may probably drop further this year.

Last year, rental annual average fell at 2.5 percent, while in 2014, than annual average in 2014. And another 2 to 3 percent rent reduction is expected.

This year, overall rentals are likely to dip by 2 to 3 percent. The Dubai property market however, continue to remain attractive to investors, with industry data indicating growth in transactions and investment values in comparison to previous year.

Monday, January 18, 2016

Emaar, Damac launch residential projects

Damac and Emaar, two major developers in Dubai have unveiled their first projects this year. The sales for the project, namely ‘Harbour Views - residences’ has been announced on 23rd January, The project is located in The Island District of Dubai Creek Harbour.

Apart from Dubai, sale of the project would be simultaneously launched in New Delhi and Karachi on 23rd January and in Mumbai on 24th January 2016.

A two storey development with a three-level podium will be the tallest residential project of the Island District of the mega creek development. All homes open to the views of the Creek, a Marina with Yacht Club, the Ras Al Khor natural bird sanctuary and the skyline of Downtown Dubai highlighted by Burj Khalifa.

The tower houses 750 residences, apart from podium apartments, in addition to 14 two storey villas with a dedicated entrance, stairway and parking. It is said that another noteworthy aspect of the project is that it will open views to another central iconic project, the details of which, would be revealed shortly. Harbour Views is likely to house world’s tallest twin towers too.

The Emaar Managing Director, Ahmad Al Matoorshi said that Harbour Views would stand apart as the tallest residential project in the Island District. Celebrating the marina lifestyle, Harbour Views homes are ideal for connoisseurs who cherish a relaxed way of life in the heart of the city with all modern amenities located within walking distance.

Meanwhile, Damac Properties has launched ‘Navitas Hotel and Residences’, a five-tower project in its Akoya Oxygen Golf Course Community, worth total of Dh.850mn. Among the five towers, one tower comprises 312 hotel rooms, managed by Damac Hotels and Resorts, while the rest four towers will house residential units that overlook the golf course and the whole project.

The five 14 storey towers are a major opportunity for those panning for investment properties. The starting price range is Dh.440,000 with a four-year payment plan option.

Akoya Oxygen spans 55million sq.ft. in Dubailand, and comprises Vista Lux, a one million sq ft central entertainment and retail district, a Hydroponic Cafe, a rainforest and a restaurant.