Better Homes growth soars 500pc
Dubai, October 31, 2007
Better Homes, a leading real estate agency in the region, has reported a 500 per cent growth in commercial sales during the first three quarters of this year.
Spurred by the continued high level of demand on the leasing side, rising capital values, growing investor confidence and increased regulation in the market, the figure confirms that the commercial sector in Dubai continues to thrive and remains as popular as ever with investors, said a senior company official.
Speaking of his team’s success, Niraj Masand, director of commercial advisory at Better Homes, said: “We are delighted with the results we have achieved so far this year. The team has grown significantly and the hard work of our consultants has helped increase our commercial portfolio and client base way beyond our most optimistic targets.”
The team, which is anticipated to grow from 40 to over 150 consultants in 2008, has seen growth in all segments of the market including retail and office space, warehouses and labour camps, with investors benefiting from attractive launch prices, discounts for bulk purchases and lower rates on off-plan properties, he said.
With supply still limited and demand on the increase, it is easy to see why investors are snapping up units in projects such a Business Bay, Jumeirah Lake Towers and Downtown Jebel Ali, Masand stated. “The current market conditions are extremely favourable to investors, enabling them to achieve high capital growth as well as some of the highest rental returns in the world.”
“Business Bay is extremely hot right now, in the last six months we have seen large increases in sales prices which are now hitting up to Dh2200 sq ft from a starting point of Dh1200 sq ft. With rental rates on the increase, it’s possible to recoup your investment in a very short space of time,” said Masand.
The lack of available office space, caused mainly by lengthy delays in construction, has certainly created a surge in market prices but with many projects expected to hit the market in the next year, Masand believes there is still some way to go in the commercial sales market. “There is such a high demand for office space in Dubai right now, with availability less than 1 per cent, there is still a considerable amount of growth in capital values to be achieved.”
Masand also believes that demand for commercial units will continue for some time pointing out that as well as existing businesses requiring space for relocation or expansion, the growth is to a large extent a result of the number of new businesses moving into the emirate. Dubai is quickly establishing itself as a regional hub for businesses looking for a route way into the GCC, India and Pakistan.
“Geographically Dubai is superbly located for business to access many places, politically it’s stable and secure and now with increased regulation such as the escrow law, investor confidence has received an additional boost,” added Masand. – TradeArabia News Service