A dynamic property market
Residential rents in Dubai rose 3% in the first quarter of 2015 (compared to a decline of 1% in the fourth quarter of 2014).
A report by chartered surveyor and property consultancy firm Land Sterling revealed that rental correction will eventually set in with a number of project handovers scheduled throughout the year, especially in communities such as Dubai Sports City, Jumeirah Village Circle and Business Bay.
At the same time, developers are seeing demand continue to rise from investors. According to the managing director of Damac Properties, Ziad El Chaar, sales hit AED2.8 billion in the first three months of the year, mainly as a result of robust demand from foreign buyers. According to him, the emirate's lack of taxes on inheritance, rental income and capital gains continued to attract attention.
Meanwhile, Dubai Properties said that it had sold all its four-bedroom townhouses in its upscale Mudon development in Dubai, following strong demand at the International Property Show 2015. Launched during the second half of last year, the 120 units ranging from 3,786 to 3,800 square feet were sold out during the event, the developer said in a statement.
Another new residential development has also been launched this week, this time in the Al Barari estate. The Nest includes 99 four-bedroom villas set in a foreign environment. "We now have a full spectrum of homes available, offering a choice for everyone from stylish apartments for couples through to spacious villas for families. The Nest bridges the gap between our different properties, offering well-appointed, more affordable lush living for families," said CEO Mohammed Bin Zaal.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. With developers pushing their projects forward, it's apparent that demand continues to increase, especially that from foreign investors. At the same time, it's interesting to note that the sector has evolved so that developers are thinking about long-term market needs: especially that of affordable housing. It's clear that Dubai has made a place for itself in the global investor marketplace as it gets ready to host the Expo 2020.