Your search results

Dubai property market showing signs of recovery

Posted by Irish Manluctao on July 21, 2016
| 0

Investors and end-users deals on rise, says ValuStrat

With a clear 12 month trend of relatively stable sales prices, the general sentiment has been cautiously optimistic towards a recovery commencing in the second half of this year, according to consulting firm ValuStrat.

“Evidence from the market place also indicates that both investors and end-users are now doing deals on well-located and correctly priced properties,” the consultancy said in its second quarter 2016 real estate review.

“For the second quarter of 2016, Dubai Land Department transaction volumes for the ValuStrat price index (VPI) coverage areas witnessed quarterly increases of 14 per cent for apartments and 7 per cent for villas,” said Haider Tuaima, ValuStrat Research Manager.

The VPI is a comprehensive data driven representation of the monthly price change experienced by typical freehold properties.

The second quarter index displayed an overall 1.1 per cent annual decline in values. However, the monthly growth rate of residential values has been broadly stable since July 2015.

April and May’s residential VPI registered 98.0 index points while June dipped slightly by 0.1 per cent to 97.9 index points. Statistical analysis has shown further indications of an early recovery in some areas, signalling possible signs of a bottoming-out in property values across the VPI coverage locations during the course of the year.

Residential investment yields saw some gain as the median asking rents this quarter were 1.3 per cent higher than the fourth quarter 2015 and 2.8 per cent higher than first quarter 2016.

For 2016, the latest estimated total supply of residential apartments and villas to be completed amounts to 16,326 units. Compared to data reported in the previous quarter, just over half of the scheduled units will be delivered this year. Nine off-plan residential projects were launched in the second quarter to add more than 2,500 units to the residential pipeline by 2020.

Office transaction sales prices fell by 10.6 per cent since last year and only 1.1 per cent since the last quarter. Median asking rents for office space fell 4.6 per cent annually, and 4.8 per cent since the previous quarter. The median asking rent for office space was Dh1,130 per square metres (Dh105 per square feet).

 SOURCE: