Weekly Dubai real estate news digest. Issue 80

11.01.2015
'15: Promising time for property
Welcome to the eightieth issue of Market Insight, your weekly guide to what's happening in the Dubai real estate market.
View this email in your browser
MARKET INSIGHT. Weekly guide to Dubai's property scene
Issue 80 |  January 11, 2014

'15: Promising time for property

While there are differing voices on the direction the UAE's real estate market is heading towards, the one things experts can agree on is that Dubai's property sector has matured. 

Measures taken by the Dubai government have helped manage the supply pipeline and at the current trends of population and tourism growth, demand is set to remain healthy. With prices stabilising, there has been some panic in the market, with fears of another property crash. However, experts concur that this is just a sign that Dubai has learnt its lesson from the past and taken steps to stop the market from heating up again. 

Real estate development and marketing firm TASWEEK pointed out in a report that the UAE real estate sector will continue to prove attractive in the year 2015. The country’s banks remain generally sound and profitable, and the domestic population remains on track, reaching around 9.9 million by the end of 2014. Masood Al Awar, CEO of TASWEEK Real Estate Development and Marketing, says: ”There are many factors pointing to the continued growth of real estate in the UAE in 2015 and beyond, including a surging population, a resilient economy with an overall inflation rate of less than 2% resurgent market confidence, and stricter regulatory controls on the sector.”

Developers in the emirate are also on top of their game this time around. The chances of a sudden correction breaking out in the property marketplace are remote, says Damac Chairman Hussain Sajwani. “Three of the government owned or supported master-developers — Nakheel, Dubai Properties and Emaar — and us as a privately-held entity currently represent anywhere up to 90 per cent of the off-plan supply that will be built in the medium term. With that kind of control in place and which also extends to setting the pricing levels, the chances of crazy things being set off and upsetting the market dynamics are remote."

Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. While there is some concern raised on the fact that Dubai may see limited growth this year, most experts agree that the emirate is not in danger of another crash and the general sentiment around UAE's real estate sector is definitely optimistic. 

Sincerely,

Pashma Manglani

Editor


News in brief

Quick Links

Dubai Residential Price Index

Interactive Maps of Dubai

Dubai Property Search
Share
Tweet
Share
Forward to Friend
Join Our List

'Property market will mature more in 2015'

Dubai’s property sector will continue to emerge as a more mature market in 2015, with the real demand now coming from end-users and long-term investors, Chairman of Emaar Properties has said.

“The concerted efforts of the Dubai government have helped manage the supply pipeline, and at the current trends of population and tourism growth, demand is set to remain healthy,” Mohamed Alabbar wrote in a column published by Arabian Business. He added there was no reason for panic though there were reports of the market softening as rents and prices stabilise.

“In 2013 we saw the property market heating up again. Demand spiked and the supply stakes broadened. Having learnt our lessons from the past, we did not let the market go berserk.”

 

Read more on Emirates 24/7

Dubai rents up by 6-25%

Rents across some of Dubai’s master communities have risen by 6 to 25% in the first rent index update of 2015 compared to the final rent index of 2014, a comparison done by Emirates 24|7 reveals.

Lease rates for apartments in International City, Dubai Silicon Oasis and Discovery Gardens have jumped by 9 to 18% as per the first 2015 rent index compared to the last update of 2014. The highest increase has been recorded in Remraam, where two-bed units have seen a rise of 13.13% to 25%.

Downtown Dubai remains the most expensive community to rent a studio apartment though rents have risen between 6.66 and 7.69% compared to the 2014’s final rent index. Dubai Marina saw rents for studio and two-bed apartments increase as well. 

 

Read more on Emirates 24/7

'UAE realty to stay attractive'

UAE’s real estate sector will remain attractive in 2015 despite global challenges, says real estate development and marketing firm TASWEEK.

AMEInfo.com reports that positive microeconomic, regulatory and population factors continue to drive real estate growth across the UAE. According to the TASWEEK report, the country's banks remain generally sound and profitable but it warns that the gross loans/deposit ratio is nearing 100%, which indicates a more limited room for growth. 

 

Read more on AMEInfo.com

$16.3m deal, most expensive of 2014

Burj Khalifa was home to the most expensive property sale in Dubai last year, with an apartment in the world's tallest tower selling for $16.3 million, according to data compiled by Reidin.com.

The Downtown Dubai area accounted for five of the top ten most expensive property sales during the last 12 months, according to data shared with Emirates 24/7. In second place was an apartment in The Address Downtown Hotel (Lake Hotel) that was sold for $9.5 million (AED35 million), while in third was an apartment sold in Marina Residences 1, Palm Jumeirah for $7.8 million (AED29 million), followed by an apartment in Burj Khalifa for $7.6 million (AED28 million) and an apartment in Le Reve, Dubai Marina, for $6.8 million (AED25 million). 


Read more on Emirates 24/7

'It's cheaper to pay mortgage than rent'

A new research report has found that it is now cheaper to pay a monthly mortgage in some parts of Dubai than rent.

ValuStrat Consulting Director and Group Head Declan King points out that a stabilisation in residential sales prices during the 2nd half of 2014, coupled with continued increases in rental rates during the same period has brought about a scenario where it is now cheaper to pay a mortgage then equivalent rent. 


Read more on Zawya

Developers in full control: Damac chief

Dubai's developers are in full control of supply and pricing and as a result, the chances of a sudden correction breaking out in the property marketplace is remote, says Damac Group's chief.

“Three of the government owned or supported master-developers — Nakheel, Dubai Properties and Emaar — and us as a privately-held entity currently represent anywhere up to 90 per cent of the off-plan supply that will be built in the medium term,” said Hussain Sajwani, chairman of Damac. “With that kind of control in place and which also extends to setting the pricing levels, the chances of crazy things being set off and upsetting the market dynamics are remote."

“All of the leading developers will have mature responses to handle any shifts in market forces. The market itself has matured.” 


Read more on Gulf News

Have a question? Ask professionals! Email us and get qualified advice regarding your property needs.
 

Copyright © 2015 IMEX Real Estate, All rights reserved.



unsubscribe from this list    update subscription preferences 

Contact us:

T:   +971 4 3951911
F:   +971 4 3951912
E:   property@imexre.com
W:  www.IMEXre.com

Toll Free (within UAE):
800-IMEX (800-4639)

Moscow office:
+7 495 5100008


RERA ORN 1671

Subscribe to our news

Latest Availability
Latest newsletters
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required
Request a call back