#Dubai #realestate market shows growth in 2014 In the #residential sector, sales values increased 15 percent during 2014, while the fourth quarter saw quarter on quarter increase of four percent. On the other hand, rental values grew 10 percent across Dubai during 2014, but stayed flat during Q4, 2014. The MPM report highlights the importance of understanding micro level factors when analyzing value adjustments, with the Palm #Jumeriah being a prime example. Average transaction values on #PalmJumeriah declined over 2014, driven in part by a readjustment by developers on the entry level price points of new products being offered to the market. For example, Palm Views has an entry level price of circa AED1.3 million for a studio apartment. Similarly, Jumeirah Golf Estates saw an entry level price level of AED3 million for townhouses in the launch of Redwood Park, which has impacted the overall average values for the development. In comparison, in smaller master planned communities such as the DIFC, there was a negative impact on average selling prices as new inventory was delivered in Burj Daman. The last quarter of 2014 saw new inventory being released on the back of positive sentiment from Dubai Cityscape. Major private developers, including GiGico, Damac and Danube launched new projects, all having a common theme whereby the focus was on an aggressive marketing campaign resulting in high sales volumes being achieved. Overall, over 50 projects were launched in the off-plan market across Dubai during 2014, which are expected to deliver over 13,000 units to the market, according to MPM Properties research. Mid-tier #properties such as Reemram and International City saw an increase in transactions, with rents having risen by over 10 percent over the year. The current pipeline of new releases for reasonably priced housing stock is focused on new growth areas such as Sports City, #JumeirahVillageCircle and Al Furjan. On the other side of the affordability spectrum, areas such as Dubai Hills, Meydan and Dubai Creek Harbor are also witnessing fresh launches of off plan properties. Grade A offices have performed well during 2014 with average rents increasing by almost 14 percent and there has been an marked improvement in the level of inquiries. MPM Properties research shows that approximately 700,000 sqm of new office space is due to enter the market by the end of 2015, with major new additions, including Central Park which is likely to see average rents facing downward pressure, meeting the demand for Grade A office space. MPM has seen landlords adapting and becoming more flexible in accommodating demand from mid-level businesses with smaller requirements as opposed to retained whole floors for larger tenants. Offices located toward the #AbuDhabi end of Dubai are performing well due to close proximity to freehold residential areas, less traffic congestion and easier access to Abu Dhabi. In the last 12 months office prices increased by an average of 21 percent, but the increase between Q3 and Q4 2014 was a more modest three percent. Jumeirah Lake Towers saw the biggest quarter on quarter jump of seven percent, followed by DIFC at five percent and Business Bay at four percent, Paul Maisfield, CEO of MPM Properties said. Dubais two tier retail market continues to evolve. Prime assets are benefiting from high footfall and retailer demand, resulting in tenant waiting lists and increasing rents. Secondary retail assets are seeing a continuing shift away from luxury brands with many older malls continuing to reposition themselves with more community offerings. Landlords are also considering unique attractions in order to entice customers back into their malls, with consideration to new leisure and F&B. For example, Burjuman and Dubai Festival City are repositioning, Dragon Mart is undergoing an extension and adding a hotel and cinema, and Ibn Battuta Mall is extending its site.
Posted on: Tue, 27 Jan 2015 05:41:35 +0000