In new data released this week by CB Richard Ellis there are more and more signs that the Dubai property market has turned a corner. The stats show a 2% average growth in apartment rentals in the second quarter, and growth of up to 8% on well-located commuitys such as Emirates Living and Downtown Dubai.
It also showed that rents were only lower in a couple of locations, with rents in the Jumeriah Village down 5%, while those in Dubai Sports City, Motor City and Business Bay all remained unchanged in Q2 according to CBRE.
CBRE say that while the cost of renting a villa is expected to remain steady throughout the rest of the year, villa rentals have also risen by 2%, meaning that villa rents are now up by 5% in the first half of the year.
The report stated that “Although there are major villa projects in the pipeline expected to enter the market in phases during the coming months, it is unlikely that this new supply will have a significant impact on lease and occupancy rates in established locations”.
“However, new and emerging villa communities may initially see rise of competitive offers as investors look to avoid void periods amidst new supply,” it added.
According to Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, Dubai was the prime example in the real estate crash, with prices plummeting by over 60% between 2008 and 2010, and it is only until very recently that there have been signs of an end to this decline. The recovering economy is fuelling the recovery in the property market, with the goal of reaching 4.5% GDP growth for the emirate this year, following growth of 3% last year.
Data from the Dubai Land Department stated that the number of residential real estate transactions increased in the second quarter by 15% with the total value reaching AED7.1bn!! The average transaction value during the three months ending June 30 was AED1.2m.
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