Realty sees broader stability in the UAE

Dubai: The UAE’s real estate sector gained well-earned stability during the third quarter of 2014 due to prudent steps introduced by regulatory authorities and sensible conduct shown by property developers to calm the market despite growing interest from the investors, according to a report.

Developers continued to launch many new projects in the UAE

Developers continued to launch many new projects in the UAE

Abu Dhabi stays strong

The online database of Bayut.com shows a strong and healthy residential market along with an improving commercial sector in Abu Dhabi during the third quarter of 2014. Positive sentiments from investors and the increase in the emirate’s population were seen to be working wonders for its realty market.

Unwavering investor interest managed to keep all sectors of the property market going strong in Abu Dhabi. Owing to abundant supply in the third quarter, the average rents of prime residential space remained stable in the third quarter of 2014 at Dh160,000 per year.

“Many people showed interest in Abu Dhabi’s residential sector,” according to the search trends of Bayut.com. The capital’s occupancy rate is improving swiftly, and this was reflected in the ever-increasing list of properties that have been sold or rented out on Bayut.com, it added.

The report said the Abu Dhabi residential sales market remained strong during third quarter mainly due to the increased residential stock of an estimated 242,000 units. The sale prices for villas and apartments increased by 5.83 per cent in September while the demand for residential property remained strong in all sectors of the market.

Al Reem Island, Al Raha Beach, Al Ghadeer, Saadiyat Islands and Al Reef Villas remained the most popular locations for buying properties in the emirate.

“The real estate market of Abu Dhabi has been spelling stability for several consecutive quarters now, and the state of affairs in third quarter of 2014 has reinforced this further,” the report concluded.

The online database of leading property portal Bayut.com shows that the slowdown in the recovery that Dubai’s real estate market has been experiencing has actually stabilised the rents and prices. However, Abu Dhabi’s residential and commercial segments remained strong and healthy during the July-September quarter. The report further says if positive sentiments continue it will spell a brighter future for the realty sector of the emirate.

“The UAE market is headed for broader stability. Over the next few months, there will be correction in areas overvalued, at the same time, there will exist pockets which will maintain their upwards climb,” Haider Khan, chief executive of Bayut.com, told Khaleej Times.

While commenting on report, he said the UAE real estate sector should draw comparisons to more mature property markets of the world in due course of time.

“The tightening of regulations and policies will serve as a great confidence booster for individuals and corporations investing in the UAE and will result in overall betterment of the industry,” Khan said.

He said consumers should expect better customer service and brokerages will need to step it up a notch and provide a great experience to end-customers. “The sooner agencies adapt to this idea, the brighter their prospects get in terms of being the long-term winners in this market,” he added.

The report said that the Dubai real estate market during the third quarter saw an evening out of all the abnormal price hikes it had experienced in the previous 18 months. During the summer, the market saw fewer transactions and in some locations the rentals slowed down as well.

“The developers continued to launch new projects, many of which were unveiled at the recent Cityscape Global 2014 event. But since these new projects are scheduled for delivery over a longer time frame, they do not have any significant impact on the supply as yet. If the government’s estimates of a significant rise in population by 2020 hold true, Bayut.com believes that the emirate will not see supply outstripping demand,” the report said.

The property portal’s report noticed tamer growth in the third quarter, with average sale prices rising by a mere 1.5 per cent. It attributed the credit to stricter regulations and a healthy pipeline of residential and commercial properties, which are expected to stem rental inflation.

“With an eye on previous announcements of realty projects, Bayut.com expects around 19,000 new units to enter the market over the next year. A lot of these units are likely to come from Dubailand in light of the sale and rental search trends recorded by Bayut.com,” the report said.

About the rents and most searched localities in Dubai, the report said average residential rents have consistently been inching up for well over two years, but third quarter of 2014 came with a slight twist.

“The average rents actually dropped in this quarter, though only by a minute 0.93 per cent overall, owing primarily to the influx of new residential units and the long holiday period,” according to real estate experts at Bayut.com.

Exceptions to this general decline existed in the form of Dubai Marina and The Greens, where rents remained stable in third quarter, and some areas also saw declines that were greater than the average. Downtown Dubai and Tecom C saw a drop of 2.87 per cent in rental values during the quarter, while rents in International City, Business Bay and Jumeirah Lakes Towers underwent a 1.82 per cent decline.

According to the database of Bayut.com, Dubai Marina emerged as the most-searched locality for rentals during the quarter followed by JLT, Al Barsha, Downtown Dubai and Business Bay.

 

Abu Dhabi stays strong

The online database of Bayut.com shows a strong and healthy residential market along with an improving commercial sector in Abu Dhabi during the third quarter of 2014. Positive sentiments from investors and the increase in the emirate’s population were seen to be working wonders for its realty market.

Unwavering investor interest managed to keep all sectors of the property market going strong in Abu Dhabi. Owing to abundant supply in the third quarter, the average rents of prime residential space remained stable in the third quarter of 2014 at Dh160,000 per year.

“Many people showed interest in Abu Dhabi’s residential sector,” according to the search trends of Bayut.com. The capital’s occupancy rate is improving swiftly, and this was reflected in the ever-increasing list of properties that have been sold or rented out on Bayut.com, it added.

The report said the Abu Dhabi residential sales market remained strong during third quarter mainly due to the increased residential stock of an estimated 242,000 units. The sale prices for villas and apartments increased by 5.83 per cent in September while the demand for residential property remained strong in all sectors of the market.

Al Reem Island, Al Raha Beach, Al Ghadeer, Saadiyat Islands and Al Reef Villas remained the most popular locations for buying properties in the emirate.

“The real estate market of Abu Dhabi has been spelling stability for several consecutive quarters now, and the state of affairs in third quarter of 2014 has reinforced this further,” the report concluded.

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