Damac occupancy rates 97pc high
Dubai, June 3, 2012
Occupancy rates across Damac Properties’ residential development portfolio in Dubai is well above average, and as high as 97 per cent in some properties, the luxury developer has revealed.
The average residential occupancy rate in Dubai is about 70 per cent, according to Global Investment House. Comparatively, the occupancy rates of Damac Properties’ more established towers The Waves and Marina Terrace in Dubai Marina are as high as 94 per cent and 97 per cent respectively.
Occupancy rates in the more recently handed over developments such as Ocean Heights and Emirates Gardens are 91 per cent and 95 per cent respectively, a statement from the company said.
Niall Mc Loughlin, senior vice president, Damac Properties, said: “Damac Properties’ extraordinarily high occupancy rates are a testament to the quality of the build and finish of our projects. Whether our apartments are occupied by the owner, or by a tenant, there is strong demand from people who want to live in a property by Damac.”
The company has evaluated the reason behind the high occupancy rates across its residential portfolio and believes it is largely due to a view within the market that properties built by Damac are better built and better maintained.
“People want to know that when they turn on the tap, the plumbing works, or when they switch on the air-conditioner, the apartment becomes cooler. These are very simple requirements, but it’s not uncommon to hear stories about apartments that don’t meet the most basic of needs,” Mc Loughlin said.
“It would be unreasonable to expect that nothing ever goes wrong in a large apartment building, but with Damac Properties, if something is damaged it’s repaired very quickly. We believe that is one of the fundamental reasons behind our high residential occupancy rates.”
Damac has completed a total of 36 buildings comprising 7,364 units, since the company was established in 2002. Of the 36 buildings, 30 have been completed since the onset of the recession in 2008.
“We are one of a handful of Dubai developers that has still been building and delivering to customers even during the downturn. This is a fact which has helped build confidence and trust in the company. Our customers know we will be here tomorrow, and that’s important,” Mc Loughlin said. “The higher occupancy rates can also be explained by a surge of new residents to Dubai.”
The Dubai Statistics Centre estimates more than 8,000 new residents move to the emirate every month, which will push the population above 2 million before the end of this year.
“The economic crisis in the Eurozone is prompting a wave of European expatriates heading to Dubai in search of work. Typically these expatriates demand high-quality housing, and that is supporting rental demand for the type of high-end apartments constructed by Damac Properties,” Mc Loughlin said.
“Investors are recognising the investment opportunity, with low purchase prices and high rental returns creating some highly favourable yields.” Residential yields in Dubai are anywhere between 7 to 12 per cent according to real estate consultancy CB Richard Ellis.
“At Damac Properties, we have an array of high-quality inventory, which is extremely attractive for investors as they can calculate their rental yield, and see a return on investment almost immediately.”
Investor confidence in the UAE is now at its highest level in 12 months, according to the latest FPI investor sentiment survey. Investors are upbeat about the outlook for the UAE economy, with almost 60 per cent of investors predicting that investment markets will improve over the next six months. – TradeArabia News Service