Tag Archives: real-estate
Property markets in Dubai and Abu Dhabi set for a stable 2015
Property prices in Abu Dhabi are expected to see a gradual increase in 2015 but not on the scale that was seen in 2104, it is claimed. Leading property firm Cluttons believes there is still some great investor appetite in Abu Dhabi and predicts that new residential schemes will still be popular. It also expects that there will be more off-plan housing launches this year, from the leading firms such as Aldar and TDIC as well as some private developers. But William Neil, head of Cluttons in Abu Dhabi warned that there is a danger that residential rents could continue to go up. ‘With no rental cap in place in Abu Dhabi, if there is a lack of supply then the market could face some of the same issues it faced back in 2007 when rents were so expensive that many people were forced to commute here each day from Dubai,’ he explained. He added that the commercial market is waiting with anticipation to find out what the new rules will be regarding the proposed financial free zone on Al Maryah Island. ‘With Yas Mall now open, we are predicting growth for retail rents in the city. However, with more shopping centres being built on Al Maryah Island and Saadiyat Island, there is a danger over the next three years for oversupply,’ he said. Meanwhile, in neighbouring Dubai the New Year is expected to see a mixed outlook with some sectors of residential property selling well but prices and sales varying depending on location. According to Matthew Green, the head of research and consultancy for the United Arab Emirates at CBRE Middle East the residential market has shown signs of stabilisation over the past six months across both sales and leasing markets. ‘We expect this to be a similar outlook for this year, with the scheduled pipeline of 20,000 new units during the year likely to help constrain rental inflation and add more balance to the sector,’ he said. ‘As has been the trend, a fragmented market will continue, with certain products and locations performing somewhat independently from the wider market. For example, the villa market, which has been relatively stable in recent quarters, could be set for rental deflation in certain areas as a substantial supply of new units starts to emerge from locations such as Jumeirah Park, Arabian Ranches, Dubailand and Jumeirah Golf Estates,’ he explained. ‘The demand for mid to low end residential offerings is expected to remain strong in the short term because of limited supply and high demand. Much of this demand is being generated by solid growth in the services sector, particularly from the retail and hospitality industries,’ he added. Dubai’s commercial office sector saw improvement in 2015 and this is expected to continue into 2015 and Dubai’s position as the headquarter city of choice for global corporates in the Middle East looks set to continue. ‘However, with limited good quality and efficient office properties available in the… Continue reading
UK property markets set to see slowing of growth in 2015 says CBRE
UK property sectors are set to continue to expand, in 2015 but the overall trend will be a slowing of growth to more sustainable levels, a new analysis suggests. Prime London markets will continue to grow in 2015, but confidence and investor interest will encourage growth in prime regional markets and secondary housing markets will fare better than in recent years, according to real estate advisor CBRE. It points out that in 2014, total returns to property averaged nearly 20% and in 2015, there will be a slowing of growth rates with average returns just under 13%. The general election in May will bring some uncertainty into property decision making but year on year there is expected to be significant rental growth for most sectors but a further improvement in yields as investment inflows continue into the UK market. Prospects for retail properties remain among the most uncertain, with few sure signs just yet that stable growth is returning to consumer spending, and cost pressures and distractions across the sector, particularly in grocery retailing, although in 2015 as in 2014, prime retail destinations will remain a safe bet, the report explains. Industrial property will continue to be attractive for investors due to a dearth of quality supply but price growth in the housing market will ease in 2015 to around 6% with transaction levels having peaked for the time being. ‘This has been a year of extraordinary expansion across the property sector and while this will continue into 2015, overall there will be a return to more sustainable levels of growth,’ said Miles Gibson, head of UK research, CBRE. ‘Rental growth will continue in all sectors and we expect investment yields to continue to improve as levels of capital flows into the UK market remain high. In terms of where growth, we forecast a ripple effect next year as property investors shift from London out to the regions,’ he explained. ‘Global economic factors, most notably the falling price of crude oil, in 2015 will benefit the UK. The likely effects of pushing down inflation and boosting consumer spending, means we should expect to see a knock on benefit for retailers which in turn could stimulate growth in the retail property sector,’ he added. ‘Although there positive signals for the property market, we recognise that there will be uncertainty caused by the imminent general election. The combination of these trends makes 2015 an intriguing prospect for property markets,’ he concluded. Continue reading
Auckland property market sees record sales, record prices and low listings
December’s residential property sales in Auckland were the strongest they have been for the final month of the year for the past decade, the latest data shows. Sales numbers were up significantly, prices reached all-time highs, and the number of available listings reaching an all-time low, according to independent agency Barfoot & Thompson. ‘It was our busiest December in the last 10 years with demand never being higher, or choice lower. Even though December was the shortest selling month of the year we sold 1,050 properties, our fourth busiest month of the year,’ said managing director Peter Thompson. He pointed out that sales in December were 28.5% higher than in December 2013 and the average sales price in December 2014 was $758,891, some $1,982 higher than November’s average price. The median price increased to $720,000 in December, which was $28,500 or 4.1% higher than November’s, and it is the first time the median price has moved above $700,000. ‘At the same time the number of properties on our books at the end of December was 2,500, our lowest number for any month end in the past 10 years. For us, this represents less than two months’ stock, and indicates that in the first quarter of this year, buyer choice will remain severely limited,’ explained Thompson. He believes that in part, December’s strong activity was a flow over from October and November, which were catch up months following a relatively low period of activity during September caused by the General Election. Although the year ended with record prices and sales activity, overall prices in 2014 rose slower than they did in 2013. The average price increased by 10.3 % in 2014, compared to 11.1% in 2013 while the median price increased by 11.1% compared to 12.7%. ‘The past two years of strong price growth is reflected in the significant change in sales volumes in both the higher and lower price segments of the market. In 2014 some 29.5% of all homes sold for under $500,000,’ said Thompson. ‘A year earlier, 38.6% of all sales were in this price category. The same trend is found at the top end of the market, with sales of homes in the $1 million and above category in 2014 representing 17.2% of all sales. A year earlier it was 12.4%,’ he added. Continue reading
