Sales of Dubai property are holding steady in 2017, according to new figures from REIDIN-GCP. The firm’s latest report shows that there were 4,330 ready units sold freehold to in the first four months of the year, up 20 per cent on the same period in 2016.
The figures are a positive indicator for the emirate’s market recovery, as investors look ahead to the positive boost provided by the upcoming 2020 World Expo. Except for February, the four months each saw more than 1,000 units sold, with March leading the way on 1,286 sales. New homes have been particularly popular, with off-plan property purchases surging 75 per cent between January and April, compared to the same period a year before.
The data also shows that rising interest rates have no impacted buyer appetites, with REIDIN predicting that buyers can handle further interest rate hikes in the coming year.
“We can see that there is no pattern in price changes and fluctuation of interest rates. This recent hike in rates is still considerably below what the prevalent rates were during the first bull rally in 2002,” says the report. “This proves the point that there are other variables that exert a greater influence, and that despite the calls by analysts, there seems to be virtually no cause and effect between interest rates and house prices.”
Dubai real estate to stabilise in 2017
7th April 2017
Dubai’s real estate market is showing increasing signs of stabilising in 2017, according to Cluttons.
The market has seen prices moderate in recent years, following a rapid rebound in property values following the global financial crisis. Now, though, with Expo 2020 on the horizon, sentiment in the emirate’s real estate is improving, as there are signs of prices bottoming out and overseas buyers returning to the market.
Cluttons notes that the rate of decline across all sectors of the property market is slowing, which “suggests increasing stability”. The firm forecasts that the market is likely to bottom out by the end of the year, with increasing supply, changing demand for executive positions in the employment market and increasing rent moderation all major factors that will influence performance over the coming nine months.
“Office rents across submarkets we monitor remained relatively steady throughout 2016, following strong growth in the preceding 12 to 18 months. However, global economic anxiety and a subsequent scaling back or delaying of short term expansion projects, particularly amongst international corporate occupiers, has begun to impact on the resilience of rents,” comments Cluttons.
Dubai delivers best returns of last decade
20th March 2017
Dubai real estate has delivered the best return of any major city in the last decade, according to new research.
A report from Reidin/Global Capital Partners shows that the emirate’s property has generated a 120 per cent return since the global financial crisis, when property values plunged 50 per cent.
Indeed, after the initial shock of the crisis, low property values spelled lots of potential for property buyers seeking long-term profits from capital growth. With Dubai’s property market now stablised and recovered, and with developers and agents looking forward to Expo 2020, Reidin and Global Capital Partners’ research shows that the emirate remains a profitable place to park one’s cash, ahead of such global hubs as London, Singapore and New York.
Most major cities returned between 5 and 11 per cent to investors, says the report. Dubai and Singapore have both returned close to 120 per cent to investors, thanks to climbing rents as well as capital gains – beating London’s 75 per cent, New York’s 63 per cent, and the 92 per cent returned by gold. Dubai is narrowly behind the Nasdaq Index, which has generated a yield of 138 per cent in the last 10 years.
“This value analysis reveals that Dubai and Singapore have been the most lucrative avenues for investors, inferior only to the riskier Nasdaq composite portfolio,” concludes the report. “It is therefore of little surprise that Dubai has become a magnet for international investors for real estate, and monetary inflows have continued to increase steadily over the last decade.”
Dubai property investment hits 42bn in 45 days
20th February 2017
Dubai property investment has reached a total of AED42 billion in just 45 days at the start of 2017.
The value of transactions registered so far this year is already the equivalent of almost half of the whole of 2016’s AED91 billion total, says the Dubai Land Department.
The figures were announced during a press conference for the 13th International Property Show, which will be held from 2nd to 4th April in the Dubai International Convention and Exhibition Centre.
The event is expected to attract 100 exhibitors from 40 countries this year, with 16,000 visitors.
Majid Saqer Al Marri, Senior Director of Real Estate Investment Management and Promotion Center in Dubai Land Department (DLD) said: “DLD is very much interested in all shows and exhibitions that aim to show the strength of our real estate market. We are keen to support these shows. Our support to this show is part of our main duties, specifically organising the real estate business and guaranteeing everybody’s right. This show provides the perfect environment for developers to operate and grow. Our support also gives greater credibility to the special offers and helps reassure clients.”
For the first time, the 2017 show will feature a real estate brokers village.
JLL: Now is the time to buy Dubai
28th November 2016
Now is the time to buy Dubai property, says JLL.
The emirate’s housing market has softened in the last year, with sales dipping and prices moderating, following a significant period of growth. With the Expo 2020 on the horizon, however, boosting infrastructure and construction activity, the market is forecast to rebound in the coming years. Indeed, JLL predicts that prices will jump between 4 and 5 per cent in 2017, making now the perfect time to buy.
According to a recent report from Cluttons, property prices slipped 2.6 per cent in the third quarter of 2016.
“The market is down almost 15 percent from its peak in 2014. We expect prices to decline by another one percent by year-end, but prices will increase by four to five percent next year,” Craig Plumb, Head of Research, MENA, JLL, tells Arabian Business.
Plumb highlights the affordable housing markets of Dubai Silicon Oasis, Motor City and Discovery Gardens as the hotspots that will enjoy the strongest price growth, making them most attractive for investors. With prices at an average of AED650,000, that price increase would result in buyers having to pay an additional AED32,500 ($8,856) for a property in a year’s time.
“The time is now right to buy property in Dubai as prices have bottomed out,” Plumb concludes. He echoes similar comments by Danube Properties in September, as the emirate’s real estate industry remains optimistic ahead of 2017.
Dubai market remains resilient ahead of 2017 recovery
30th September 2016
Dubai’s property market is remaining resilient this year, ahead of an expected recovery in 2017.
The emirate has seen something of a cooldown in the last year, with prices dipping, following rapid growth. According to the General REIDIN sale price index, values dropped 7 per cent year-on-year in the first half of 2016. Prime prices droped 5 per cent annually in H1 2016, but prices remained stable on a month-by-month basis.
This slowdown, though, has widely accepted as a correction by developers and agents, with Knight Frank forecasting that the residential market will level out by the end of this year, before a gradual recovery begins in 2017.
“We believe the real estate market is better situated to face any potential threats,” says Knight Frank’s latest report. Indeed, the soft landing has sparked talk of a more mature market, with sellers becoming more realistic in their prices and expectations.
With the Expo 2020 on the horizon, confidence is also on the up; while data from the Dubai Land Department shows that the total value of sales in H1 2016 fell 12 per cent year-on-year, the number of sales increased 23 per cent.
“The outlook for the emirate in general and the real estate sector in particular depends on a number of global and regional fundamentals. Further volatility in oil prices, the US presidential elections (November 2016), and on-going geopolitical tensions are likely to impact the behaviour of currencies, investor sentiment, and consequently the demand for property,” says Knight Frnak. But while the agent notes it’s “difficult to predict when the next growth cycle will be”, it forecasts the residential market will “level out by the end of 2016 before seeing gradual recovery in 2017”.
“This is supported by continued government spending on infrastructure and facilities, in preparation for the Expo 2020,” adds the report.
Now is the time to buy in Dubai
13th September 2016
Dubai or not Dubai? “Dubai” is the resounding answer given by one expert this week, who points out that the emirate’s real estate has never been better priced.
The emirate has seen softening property values in recent years, which many in the industry have welcomed as corrections rather than a mini-crash. Regardless of how the conditions are perceived, though, the softened prices came after a thriving period of rapid growth, which means that property is something of a bargain.
“At the moment it’s a very good time to buy a property,” said Danube Properties chief, Rizwan Sajan. “I always believe that Dubai is a very small country and it’s going to be full very fast. When it starts filling, you will not be able to buy a property.”
Sajan made his remarks at Cityscape, hailing the emirate as a buyers’ market.
“One should look around for deals any go and invest in Dubai property because I’m not sure whether you’ll get the same property next year or after that,” he added. “You don’t have to buy only from Danube, go and buy anywhere.”
He also noted that with rental values high, purchasing a property is even more of a relative bargain. Indeed, the agency and developer is now targeting tenants looking to hop onto the housing ladder. So far, all of its similar projects in the last two years have sold out.
His comments arrive as a survey from Savills confirms the positive mood in Dubai, with 50 per cent of respondents saying they expect the market to improve and 51 per cent of those renting keen to buy. 62 per cent of tenants planning to become homeowners would be buying for their own use rather than as an investment. Only 17 per cent said they were not planning to buy real estate in Dubai in the near future.
Sajan said that Danube plans to complete its current developments several months ahead of the estimated delivery dates.
“This is very important for developers in the UAE because majority of people in the past have burned their fingers where they’ve invested in developers and have not got the delivery. If we change the strategy and timing of all the developments, Dubai will go a long way,” he added.
Record transactions continue in Dubai
20th July 2016
Dubai transactions in 2016 have hit a record high in the first half of 2016, according to the latest official statistics.
The figures from the Dubai Land Department show that the number of sales rose to 28,251 in the first six months of year, up 22.8 per cent on the same period in 2015.
However, transaction values dropped 12.4 per cent year-on-year to AED113billion.
Residential property sales made up 43 per cent of the total (over 20,000), while mortgages accounted for 6,391 sales.
Business Bay was the most popular hotspot for buyers, with the highest number of unit sales: 1,643 transactions totalling AED2.349 billion, ahead of Dubai Marina (1,392 sales, worth AED2.893 billion) and Warsan 1 (999 sales, worth AED454 million).
DLD Director General Sultan Butti Bin Merjen commented in a statement: “Dubai has achieved a high percentage of growth with the value and the number of real estate transactions, which provides reassurance about the positive development that the Dubai property market is witnessing, and proves the attractiveness of the emirate’s real estate.”
In terms of developments, Sheikh Mohammed Bin Rashed Gardens was number one, with 463 sales worth AED1.173million, followed by Al Thunaya 4 with 141 sales worth AED315million and Al Yalayis 1 wwith 132 transactions worth AED219million.
Dubai enjoys record start to 2016
30th March 2016
After stabilising in 2015, Dubai is enjoying a record start to the year, with property sales already passing £12.8 million.
Figures from the Dubai Land Department show that a record total of AED68.48 billion has already been transacted, painting a positive picture for the coming year. Indeed, they follow a downbeat 12 months for the emirate’s housing market, with many brokers reporting that house prices fell around 10 per cent and sales moderated. Now, though, the mood is improving, with experts arguing the market has stabilised.
“Sentiments are slowly turning around by way of snapping up “below market” deals as well as end users looking to capitalise on current conditions,” Sameer Lakhani, Managing Director at Global Capital Partners, tells Gulf News.
“It is the nature of the turnaround that will be debated in the coming months — but what we are seeing is a clear bottoming out process underway.”
That bottoming out of values could attract more investors seeking to purchase before prices begin to climb once more.
Gibran Y. Bham, Co-founder of Lookup.ae, adds: “Sellers listing their properties are finding it difficult to move properties at perceived market prices. We’re seeing sellers revise prices downwards to attract buyers who are now patient and intent on obtaining the best possible price points.
“The current correction has brought prices back to just before pre-winning Expo 2020 levels.”
Expo 2020 is certainly set to be a milestone for the emirate’s real estate market, with the exhibition also expected to provide a major boost to both activity and demand.
KPMG expects the market will recover in 2017 as work surrounding the 2020 event really gets underway,
“With effective regulations in place and the infrastructure investment that is committed as part of Expo 2020, we should see an upturn in the real estate industry in 2017,” Sidharth Mehta, partner and head of building, construction and real estate at KPMG Lower Gulf, tells The National.
“When preparation for Expo 2020 picks up, we expect to see a significant amount of job creation and an increase in demand for residential real estate.”
Sultan Butti bin Merjen told Emirates247 that more than AED68 billion of deals have been struck in the first 53 days of 2016, forecasting a total of AED300 billion to be invested in the market over the course of 2016.
Speaking at the Cinder Dubai 2016 conference, Bin Merjen added: “Investors are buying into the property market and we can see that, with registration of AED68 billion worth of deals from January to February 22 2016. In fact, we expect to touch AED300 billion in real estate transactions this year.”
“People talk of a correlation between lower oil prices and property, but we haven’t seen any such thing,” he added.
“People are buying and not all of them have any business with oil. There are a lot of investors with money who have trust in Dubai.”
The figures follow figures from the DLD showing that 55,928 investors from 150 nationalities invested a total of AED135 billion in Dubai real estate in 2015.Google+