Dubai property prices on the up as real estate market shows positive signs of improvement

April 5th, 2012

The Dubai property market, which was badly hit by the global financial crisis in 2008, is now showing positive signs of growth in the first quarter of 2012.

JustProperty.com – the largest dedicated property sales portal for the UAE – has seen a positive uplift in Dubai real estate prices in the first quarter of 2012 with some villa communities experiencing up to 9% price rises.

The Springs Dubai, for example, an ever-popular Emaar Development consisting of predominantly 3 and 4 bed family homes with landscaped gardens and community parks and lakes, has seen a promising increase in property prices in the first few months of 2012. The demand for Dubai villas still remains high as the supply of high-end family homes is not yet matching the demand.

Investors should however be cautious of these latest figures, as a large number of new properties are coming onto the market in 2012, including the huge Jumeirah Park villa development by Nakheel. Other developments such as Al Furjan and Jumeirah Village also approaching completion, each of which will bring a very large number of Dubai villas onto the market.

Apartment prices in the iconic Dubai Palm Jumeirah have also seen an increase in Q1 2012 as additional supply of apartments on the island is limited. All apartment developments on the trunk are now complete with just a few residential projects on the crescent left for completion. The “Palm Jumeirah Central Park” running down the middle of the Trunk is well underway and promises to be a positive “value adder” to the Golden Mile and Shoreline apartments.

All in all, the outlook for the Dubai real estate market is looking much brighter now than it did at the end of 2011, however caution should be taken in certain areas where large additional supply will be coming onto the market throughout the year.

Posted in Dubai real estate, New in Dubai, Price Trends | Comments Off

Dubai Property Sale prices fall further in 2011. Good time to invest?

March 27th, 2011

Dubai real estate prices have fallen further in Q1 2011. Price drops have varied across different areas. Areas seeing the highest falls are where new supply is the greatest. Other affected areas are those that offer low quality and have nearby areas where quality alternatives have appeared.

Dubai apartments for sale have fallen in price more than villas due to the large amount of new apartment buildings being built around Dubai. So is this a good time to buy a property in Dubai? The fundamentals of Dubai in terms of the economy looks positive. Dubai has emerged well from the recession and is seeing steady if unspectacular growth in terms of GDP. However, a closer look reveals a more positive picture. Prior to the recession,  real estate in Dubai accounted for 26% of Dubai’s GPD. This sector has shrunk enormously. Yet, despite this drop in GDP from the real estate sector, the other sectors have performed strongly to make up for this and post a positive GDP growth. Dubai is growing as a business and tourist hub – its key long term objectives. The health of the economy has a greater impact on Dubai properties than in other typical markets. This is because the vast majority of residents are afforded a visa to stay in Dubai if they hold a job. A better economy creates more jobs and increases the population of Dubai. A higher population thus increases the demand for properties in Dubai.

While the expected supply has a negative pressure on Dubai property prices the increasingly well performing economy and expanding population will absorb the supply. In the long term, now or the coming months, this is a good time to buy Dubai properties. The mortgage market is showing signs of recovery which will increase the buying power in the market. The continued population growth will also increase demand for rent and Dubai property for sale. For those looking at Dubai investment properties this year, the questions are around which areas are best for rental returns and long term capital growth. Dubai Marina has always been and will continue to be a popular area. A typical Dubai Marina property  will return around 8-9% per annum. A villa in Dubai will typically offer rental returns of around 6-7% per annum and there are some Dubai villas for sale that may offer greater returns.

However, an investment towards commercial property Dubai poses quite another proposition. Off-plan or unoccupied commercial units are a more of risky investment as many landlords will be competing for tenants due to the much larger over supply in the commercial sector.

Dubai real estate in the residential sector offers attractive prices at the moment with good rental returns. While the prices may fall slightly further in this year, from a longer term perspective, they are relatively cheap at the moment and represent a good opportunity to buy. A high rental return currently on offer for properties should more than satisfy investors.

Posted in Price Trends | Comments Off

Dubai real estate market set for rebound by end 2011.

January 18th, 2011
The Palm Jumeirah Shoreline Apartments

The state of the Dubai property market has a much healthier outlook for 2011 according to leading property portal Just Property Dubai. The sharp decline in Dubai apartments and Dubai villas prices in 2009 and 2010 has somewhat abated and in certain areas of Dubai prices of villas for sale (such as the popular Palm Jumeirah development) are on the increase.

Whilst there are signs that apartment prices in areas like the oversupplied Dubai Marina are still set for a slight price drop in the first half of 2011, the overall outlook for the rest of the year looks positive. Sales activity on the Dubai property portal www.justpropertydubai.com is already starting to pick up as investors are slowly but steadily making their way back to the Dubai real estate market and dipping their toes into the much clearer Dubai property waters.

Take for example some of the exceptional deals on offer at the Greens Dubai on Just Property Dubai. A top end luxury 1-bed apartment in the Links Tower with Emirates Golf Course view (currently advertised on the Just Property Dubai portal) can now be purchased for AED 650,000 with the prospect of an immediate AED 65,000 (10%) yield from a long term rental booking. A rental yield of 10% is almost unheard of at present in established real estate markets such as Western Europe, and this certainly signals that the Dubai property market in 2011 has a much stronger outlook than some may have believed.

There are other positive signals that Dubai apartments and villas for sale are on the up. The wider Dubai economy has had some positive news over the past months most notably from state-owned Dubai World who recently confirmed the successful restructuring of the majority of its debts and that work on key Dubai real estate projects such as Jumeirah Park and Al Furjan was to re-start imminently.

Whilst the Dubai property market still has some way to go before it is fully back on a firm footing, 2011 certainly has a more positive outlook for Dubai apartments and Dubai villas for sale.

Just Property Dubai is Dubai’s leading property sales portal and sister portal to market leading rentals portal Just Rentals Dubai. Search the Just Property and Just Rentals portal for Dubai property for rent and Dubai real estate for sale across all popular areas of Dubai from Dubai’s leading real estate agents. Visit www.justpropertydubai.com and www.justrentalsdubai.com for further information and to start your Dubai property search.

Tags: , , , ,
Posted in Area Insights | Comments Off

Dubai property developer Nakheel restarts work at Al Furjan

November 13th, 2010

Nakheel, the property arm of  Dubai World, confirmed yesterday that work has recommenced on 523 luxury villas and terraced homes in the Al Furjan development in Dubai.

The company has also confirmed that work has re-started on over 500 homes in the Jumeirah Park development. Both the Al Furjan and Jumeirah Park villas are scheduled to be delivered in the second quarter of 2012.

The Palm Jumeirah – Nakheel’s flagship development – has also seen some new activity over the past few weeks with site preparation work almost complete on the Golden Mile Gardens (a mile long stretch of gardens and walkways connecting the Shoreline apartments and the Golden Mile buildings on the trunk of the Palm island.

This is promising news for the Dubai real estate market and will provide a much needed boost in market confidence as many believe Nakheel is key to the success of the Dubai property industry.

Just Property Dubai – Dubai’s real estate portal
Your number one community for Dubai property listings, news, information and discussions.

Tags: , , ,
Posted in Area Insights, New in Dubai | Comments Off

Dubai Property delivers high rental returns

October 19th, 2010

The sharp property price drop from the 2008 levels now present excellent rental returns from Dubai property. Despite small drops in rental market expected this year, the rental yields are much higher. Typically, property in prime areas such as Palm Jumeirah and Dubai Marina attract between 7-9% yields with some properties offering well over 10% yeilds.

The reason for this is that Dubai has remained robust over the last year in terms of population. After the initial population loss in 2008 due to redundancies, Dubai’s population has been steadily climbing. This population needs housing. Unfortunately, it is still very difficult to get mortgages especially for middle/lower middle class due to strict lending criteria for mortgages. This essentially has forced many would be buyers to rent. There is an oversupply of properties in some areas however the price of property  already reflects this and hence the rental returns are healthy.

High rental returns are very enticing given the era of low interest rates achieved from savings accounts and traditional investment vehicles such as bonds. A long term hold of a Dubai property will yield excellent rental yields in the short term and will, almost invetiablity, achieve captial appreciation in the long term.

Tags:
Posted in Price Trends | Comments Off

Dubai hotels eye lucrative Ramadan business

August 5th, 2010

The Dubai hotel industry has had a difficult time in 2010 with an increased supply of hotel rooms – up 13% from 2009 – however the summer Ramadan month is a traditionally good time for hotels in the UAE with many tourists coming to Dubai to celebrate the holy month with friends and family.

Many hotels are already promoting their Ramadan special offers and Iftar meal deals with some offering excellent discounts of up to 20% for those who book hotel rooms in Dubai before the start of Ramadan.

Just Rentals Dubai offers over 300 hotels in Dubai for visitors to make bookings online. To get the best rate for your next stay in Dubai, check out our online hotel booking system. There are no booking fees we offer the best rates available.

Tags: , , , ,
Posted in New in Dubai, Tourist Watch | Comments Off

Dubai Housing Fee to be mandatory from January 2011

May 31st, 2010

The Dubai Municipality announced today that Housing fees will become mandatory for all residents in Dubai from 1st January 2011.

The Housing Fee is 5% of the tenancy contract for tenanted properties. For Landlord-occupied properties, the landlord will also be charged 5% of what the RERA rent index shows as the average rental price for the property in question.

This Housing Fee is equivalent to what expats will be more accustomed to as Council Tax and will be used to pay towards the upkeep of roads, landscaping, road lights etc in each of the residential communities.

Whilst 5% sounds like a large additional payment that residents will have to pay for, it is still much cheaper than other property related taxes that are levied in other countries.

Will the enforcement of the Housing Fee from January next year have any impact on the rental prices in residential areas? Some people think so as tenants will try to pass this cost onto the landlords by requesting a reduction in the rent paid to off set this additional payment.

Tags:
Posted in Property Law | Comments Off

Seven new stations to open on Dubai Metro red line

April 29th, 2010

Tomorrow seven new stations will open on the Dubai Metro, along with 5 new trains serving the Red line.

The new stations to open will be Emirates, Airport Terminal 1, Al Karama, Emirates Towers, Dubai Internet City, Marina and Ibn Battuta.

These new stations will serve thousands more residents in Dubai, particularly those in the popular Dubai Marina / Dubai Internet City areas.

By the end of the year, the Dubai Roads and Transport Authority (RTA) plans to have all 29 stations and 24 trains on the Red Line operational.

The Dubai Metro has been a huge success since it’s launch in September 2009 and is already a very popular mode of transport as well as somewhat of a tourist attraction for tourists to the city.

Tags:
Posted in New in Dubai | Comments Off

Dubai offices for rent – pricing continues to plummet

April 5th, 2010

Office prices in Dubai continue to decline at fast rates. This is due to vast oversupply of available offices across many areas in Dubai.

Jumeirah Lake Towers currently has around 20% occupancy levels despite very competitive pricing. To make the situation worse for would-be landlords, there is a huge amount of supply of office units to be completed in the next two years. While this represents bad news for landlords, it represents terrific opportunities for existing and start-up businesses.

Lowering the cost to businesses will ultimately benefit the local economy and the population. This represents a particular opportunity for start-up businesses that can potentially afford office space to aid their business operations. This would have been out of the question 2-3 years ago where office space was amongst the most expensive in the world and stories of businesses hiring hotel rooms as office space was common.

Tags: ,
Posted in New in Dubai | Comments Off

Dubai rental index shows signs of rent price stabilisation across many areas

April 5th, 2010

While the Dubai real estate market for property sales is still struggling to show signs of recovery, the Dubai rental market is now showing positive indications of stabilisation across some areas. However, certain areas are witnessing price drops largely due to supply. In addition, the lower end of the market in new developments such as International City and Discovery Gardens also shows rental value decline. Where supply is balanced against demand and local amenities are present, rental values have stabilised and in some cases have increased.

The reason for the stabilisation is largely down to economic confidence and job stability. This confidence is buoyed by recent surveys that show companies are hiring or planning to hire in the near future. These additional jobs will bring in more foreign nationals to Dubai, who will need housing, as well as potentially increase the spending power of existing residents.

However, rental values are not expected to increase by any significant margin over the next year even if the Dubai population increases through new jobs. The expected supply will at the very least meet this demand and most likely exceed it. Areas such as Palm Jumeirah and certain villa communities should hold their prices through the year and potentially see increases as there is very little potential for extra supply.

A case in point is the Palm Jumeirah villas where supply has been static for the last year. Garden homes (4 -5 beds) have seen their rental value increase from AED 300,000 at the peak of the market crisis to over AED 400,000.

Tags:
Posted in Price Trends | Comments Off

« Older Entries