Dubai villa sales up 2.8pc in Q2
Dubai, August 15, 2011
Villas in Dubai continued to perform well during the second quarter of the year due to the lack of forthcoming supply in 2011, resulting in a quarter on quarter increase of 2.8 per cent, said a report.
While apartment sales in Dubai have declined by 2 per cent, the office market remains oversupplied – with the current supply at 5.2 million sq ft and another 2million sq ft to be delivered by 2014, said the Market Snapshot, a real estate report released by top property consultants Landmark Advisory.
To date, as market conditions continue to favour tenants with landlords’ willingness to provide incentives, capital values have observed a 1.7 per cent drop, it added.
Over the past 12 months, the astute research and analysis division of Landmark Properties has observed three distinct submarkets emerging within Dubai’s residential market; prime, secondary and tertiary.
“Based on transactional data and third-party research, capital values continue to decline in tertiary areas with an imbalance between supply and demand,” said Michael Michael, director of Landmark Properties.
“Markets such as Discovery Gardens and International City have witnessed the largest decline, while prime locations such as Downtown Dubai have witnessed the least.”
According to Michael, the reason prime markets have performed so well is predominately due to minimal supply.
Abu Dhabi’s real estate market continues to evolve as handovers take place in Marina Square and Sowwah Square. However, Landmark Advisory has noted that Dubai continues to have a negative effect on the Emirate’s assets.
“A decline of 3 per cent has been witnessed across Abu Dhabi’s apartment rents as Dubai still plays its damming part,” Michael said.
Michael confirmed capital values have declined slightly – 2 per cent – even though few transactions have taken place.
“Therefore, it is predicted that over the next 12 months people will be drawn back from Dubai as rent prices and values continue to fall,” he added.
In regards to Abu Dhabi’s commercial market, Landmark Advisory has witnessed a decline of 4.2 per cent in Grade A rents, with this decline expected to continue as more supply comes to the market.
“We predict that another 850,000 sq m will be delivered over the next two years,” Michael concluded. – TradeArabia News Service
More Construction & Real Estate Stories
- Damac launches luxury apartments at Expo site
- Kuwaitis top GCC property buyers in Oman
- Rubber World to showcase at Big 5 Saudi
- Tool to help create effective property listings
- 'Smart' move by Dubai Design District
- Drake unit wins $13m contract in India
- Solar-powered cleaning boats launched in Sharjah
- $27m Expo Hotel Sharjah deal signed
- Arabtec unit wins $282m Emaar contract
- Abu Dhabi to host pool & spa expo
- ADCM unit secures $213m bridging loan
- Cluttons Dubai launches new luxury apartments
- Dubai developer Damac profits triple to $641m
- Dubai to start work on $544m water canal
- Dubai property market can absorb 25,000 units
- Jones Lang LaSalle renamed 'JLL'
- Aldar raises synergy estimate from Sorouh merger
- UAE industrial property sector keeps up growth
- Dubai residential property prices up 26pc
- Majid Al Futtaim to build new mall in Dubai IMPZ
- 300 firms to take part in Dubai property forum
- Naseej inks deal to develop Bahrain projects
- Dadabhai unveils new residential project
- Flowcrete completes Dubai Mall project
- Global asphalt demand hits new high
- $1.3bn infrastructure investment firm set up in Saudi
- Manara sees big project villa success
- Global giants eye RAK utility projects
- Cayan partners with international artist Zsuzsanna
- Samsung, Hyundai win $1.7bn Iraq deals