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ValuStrat consultancy was one of the last among analysts to present its own report about changes in key indicators of the Dubai housing market last week. The experts of this agency expressed solidarity with other analysts in the opinion that two main factors capable to draw property buyers out of their summer ‘anabiosis’ in autumn are further property prices decline in the first place, and the abundance of new propositions from developers at coming in early September Cityscape Global real estate exhibition, in the second place.
As expected, the figures revealed by ValuStrat on prices in the real estate sales and rentals segments, are not too different from other evaluations: in Business Bay house prices decreased by 6% on average in the second quarter, while areas with affordable property, such as International City, Sports City and Discovery Gardens saw a decline in sales prices by 4%, according to ValuStrat, despite the fact that rentals in these areas, on the contrary, are growing significantly.
According to the Dubizzle portal, popularity of affordable housing in these areas and in old Dubai is so great that the rentals here are increasing by an average of 5.5% quarter-on-quarter for large apartments and by 8-18% for cheap studios and one-bedroom apartments.
However, not only property buyers are waiting for the fall season in hope of further prices declines, but the developers, too, are getting ready to take part in the major event of the industry, Cityscape Global exhibition and the associated events. Cityscape Awards, one of the most prestigious competitions of the real estate world, is going to take place in Dubai in parallel with the exhibition. 37 winners from 15 different countries will be selected in 13 different nominations. The competition organizers noted a high chance for Dubai real estate developers to win in most categories.
And in Dubai construction realms, despite the whole market lull, everything is running its course. Last week, several developers reported on the successful achievement of key milestones in the construction and sale of the off-plan property. In particular, 80% of property in the MAG 5 Boulevard first phase development is already sold out, and the Dubai World Central district itself, where this residential complex is situated, last week was officially renamed Dubai South, to mark a new stage in its development. Another developer Danube Properties also passed to the active phase of housing construction in the complexes Glitz 1 and 2 in Dubai and chose the general contractor the last week.
Meanwhile, the man-made islands project The World is, too, taking real shape: the developer of the Sweden Island is ready to start selling luxury villas on the island, while 42 fantastic "floating" villas by Kleindeinst Group may also soon be clearly seen.
Thus, given recent trends, the next couple of weeks in anticipation of the fall in the Dubai real estate market is likely to pass relatively quietly, and developers will save new launches and presentations of new exciting projects for Cityscape Global.
