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Average apartment prices up in Dubai but down in Abu Dhabi
Average apartment rents in Dubai increased by 3% in January compared to the previous month but amounts varied across property types, the latest data shows. Average rents reached an annual rate of AED138,000 overall with the market seeing some adjustments, according to the latest report from property portal Bayut. The firm also reports an improvement in yields for apartment property investors, reaching an average of just over 6% but these do vary according to property type, location and quality with some reaching up to 10%. One bedroom apartments recorded an average of AED97,000 in January, down 0.8% month on month while two and three bedroom rents were up 0.1% and 2.2% respectively AED151,000 and AED211,000. Rental values for four bed apartments also fell, down 2.2% in January compared to December 2015 to AED330,000. Yields improved across all apartment types. Studios offered average yields of 7.235, one bedroom apartment 6.4%, two bedroom apartments 5.7%, three bedroom apartments 5.3% and four bedroom apartments 3.55%. Dubai Marina remained the most popular locality for renting apartments in Dubai, followed by Jumeirah Lakes Towers. Bur Dubai, Downtown Dubai and Business Bay. In neighbouring Abu Dhabi rents are falling with values across all property types apart from three bedroom flats falling in January. The firm said that this could be the market adjusting to growth in 2015. Average apartment rents fell 5% from AED 141,000 in December 2015 to AED 135,000 in January. Studio apartment rents were down 3.6% to AED64,000, one bedrooms were down 1.3% to AED99,000, and two bedroom flats down 4% to AED136,000. Four bedroom apartment rents well the most by 4.6% to an average of AED252,000 while three bedroom apartments saw rents rise, up 2.3% to AED192,000. The firm also pointed out that although apartment rents fell last month in Abu Dhabi, average yields still offered a lot of value for investors, averaging 7% across all types. Yields for studios were 9.4%, one bedroom apartments 8%, two bedroom apartments 7.3%, three bedroom apartments 7.4% and four bedroom apartments 4.6%. In terms of popularity Al Reem Island, Al Raha Beach, Al Reef, Al Ghadeer and Saadiyat Island remained the top five locations for renting apartments in Abu Dhabi. Continue reading
Cost of housing in UK means more young people still living with their parents
Affordability issues mean that more young adults aged 20 to 34 in the UK are more likely to be sharing a home with their parents than any time since 1996, new research shows. There were 618,000 more young adults living with their parents in 2015 than in 1996 at 3.3 million compared with 2.7 million, according to the data from the Office of National Statistics (ONS). Nearly half of 20 to 24 year olds lived with their parents in 2015, compared with a fifth of 25 to 29 year olds. For 30 to 34 year olds, this figure was less than one in 10. The research shows that the percentage of young adult householders owning their home decreased from 55% in 1996 to 30% in 2015 for 25 to 29 year olds and from 68% to 46% for 30 to 34 year olds. The percentage of 25 to 34 year old householders renting their home has surpassed those who own their homes over the last decade. There has been a noticeable increase in renting since the early 2000s and the ONS says that this may be due to increased demand for rented housing as house prices increase and an increased supply of privately rented housing from a growing number of buy to let investors. The increase in renting has been largest for householders who are aged 20 to 24. In 2015 some 91% of householders aged 20 to 24 were living in rented accommodation; this is higher than all other age groups. Only 9% of 20 to 24 year old householders owned their homes either outright or with a mortgage or loan in 2015, down from 30% in 1996. Saving for a deposit is often seen as one of the biggest hurdles to home ownership and the report says that first time buyers’ deposits have increased from around 10% of the purchase price in 1996, to a peak of 27% in 2009. This was the height of the economic downturn, when mortgage lenders placed greater restrictions on the mortgage lending criteria used to assess applicants’ ability to afford a home loan. In recent years the size of deposits paid has fallen slightly but remained above 20% of the purchase price on average. The size of deposits paid by first time buyers has risen more than deposits paid by existing home owners. This is because prospective first time buyers who have smaller deposits saved were less likely to be approved for a mortgage, and therefore less likely to buy a home. That left only those with larger deposits who did buy their first home, which in turn pushed up the average deposit paid. Between 1971 and 1999, the amount paid for a house by first time buyers with a mortgage fluctuated between two and three times their annual income. After 2000, this ratio increased rapidly, driven by increasing house prices , reaching a peak of more than 4.5 times their annual income in 2004 and… Continue reading
Rental prices in Spain fall for 34th month in a row
Rental values in Spain are continuing to fall with the latest figures showing that average rents fell by 0.4% in January compared to the same month of 2015, the 34th month in a row of declines. The data from the National Statistics Institute (INE) shows that rents fell in all regions except in Galicia where they increased by 0.3%, the Balearic Islands and Catalonia both up 0.1%, ad were static in Murcia and Navarra. The most significant fall in rental prices were in La Rioja where they were down by 2% while in Castilla y Leónand Castilla-La Mancha rents fell by 0.9%, were down 0.8% in Madrid and Extremadura and down 0.7% in Asturias and Valencia. The regions of Andalucía and Aragón registered the same rate of decline as the national average at 0.4%, while in Cantabria rents fell by 0.3% and the Canary Islands, the Basque Country and Ceuta all recorded declines of 0.2%. But in the buying and selling market the news is more positive with the INE data showing that the Spanish housing market grew by 11% last year after bottoming out in 2014. There were 318,055 home sales last year, the first time sales have risen above 300,000 a year, and following 260,000 in 2012 and 2013. But sales are still considerably below the 700,000 recorded before the global economic downturn in 2007. In terms of percentage growth, the housing market expanded by 11% last year, after rising 4% in 2014, and according to Mark Stucklin of Spanish Property Insight this suggests that the market has finally turned around. The crash in sales started back in 2008, and declined in five of the six years between 2008 and 2013, with dramatic double digit falls in most of those years. However, looking just at December, sales were up 8% year on year, meaning the market expanded every month in 2015, the first year that has happened since the crisis began. There were 77,865 new home sales registered last year, and 276,267 resales, meaning that resales were 78% of the market, down from parity as recently as 2013. ‘The new homes market has failed to recover as quickly as resales in part due to a lack of new developments on offer, though sales may start to recovery this year as more new projects come on stream,’ Stucklin explained. Of the selected regions most of interest to foreign buyers, Barcelona’s property market increased the most last year, up by 20%, but new home sales fell 20% while resales were up 32%. This was followed by Cadiz province, Las Palmas in the Canaries and the Balearics all up 15%. Indeed, all regions were positive with the exception of Huelva, home to the North Western end of the Costa de la Luz, also known as the Spanish Algarve, where they fell by 2%. ‘The Spanish property market now looks to be on a growth path after years in crisis. Sales growth was particularly… Continue reading
