According to the report by Global Capital Partners (GSP) research company, the most far-sighted property buyers in Dubai eye up for deals in such areas as Jumeirah Islands, Dubai Marina and Arabian Ranches.
The benefit is that compared to the market’s peak 18 month ago property owners in those areas are ready now to significantly cut the price and offer quite attractive value for quality high-end units.
While in the mid-2014 the average psf price of residential units in Jumeirah Islands was no less than USD 493, today it can be USD 410. For apartments in Dubai Marina this figure dropped from USD 493 to USD 414 psf. Arabian Ranches comes next. Here you can now buy a perfect high class property at an unprecedented price of USD 300 psf.
“It is pertinent to note that these offerings have been quickly snapped up as bargain hunters have come in. It is the incidence of these transactions that perhaps imply the formation of a base effect occurring,” said Sameer Lakhani, Managing Director at GCP.
“Given the supply/demand metrics at play, we opine that Dubai is expected to enter its recovery phase by late 2016,” Lakhani added.
Occupancy level in Jumeirah Islands, Dubai Marina and Arabian Ranches today is not less than 90%: it is almost impossible to find free housing for rent here, so rental prices keep growing there on a yearly basis, and rental income reaches an average of 7-8 %.