Dubai
Dubai rents expected to remain stable in 2016
Dubai is set to see a more stable real estate market in 2016 with prices expected to rise slightly and rents remain stable in the coming 12 months. New growth is likely to centre on affordable homes with several developers already announcing a foray into this sector of the real estate market. International City, IMPZ, Dubailand, Sports City, JVC and Silicon Oasis already have a number of lower cost options for buyers. The latest data from the Real Estate Regulatory Authority shows that rents for one and two bedroom apartments fell in 2015 across much of Dubai. Rents for one bedroom flats fell by between 4.55% and 11% depending on location. Two bed rents in Downtown Dubai are down by between 5.26% and 5.88% while in Jumeirah Lakes Towers (JLT) they fell by between 8.33% and 10%. In International City, rents of two bedroom apartments are down by 7.69% to 10%, in Dubai Marina they are down 5.26%, in Palm Jumeirah they dropped by u to 5.55% and in Discovery Gardens they fell by 5.8%. However rents in this sector were stable in many other locations including the Greens, Silicon Oasis, Jumeirah Village Circle, Arjan, Dubai Sports City, Dubailand and the International Media Production Zone. The arbitrary nature of rent prices is also shown in the latest data from real estate portal Bayut. It shows that average rents at the end of 2015 were AED 137,000, up 2.14% from AED 134,000 at the end of December 2014. A breakdown of the figures show that for studio apartments average rents were unchanged year on year but those for one bedroom flats increased 6.6% while two and three bedroom apartment rents fell by 4% and 2% respectively. Four bedroom rents fell by 12%. The firm believes that more affordable property will prove popular and is expecting 2016 to be a busy year in the residential real estate market as the population continues to increase and the economy continues to diversify. ‘Business and job growth will drive demand for residential and commercial spaces and ultimately help push property prices upwards,’ the firm added. Continue reading
Dubai to get more affordable homes
Dubai is usually associated with luxury property that fits with the glitz associated with the celebrities and wealthy property owners in the emirate but several new announcements now suggest otherwise. One developer is to build a series of affordable homes in Dubai while over 200 dilapidated villas that were lying empty are to be demolished. The moves show a different side to the emirate’s real estate market and is a reminder that not all properties are luxury apartments for the well off. Danube Properties has unveiled an affordable housing project that will allow home owners to turn one room into two. The Ritz Project at Al Furjan includes 452 fully furnished apartments, comprising of studios, and one a d two bedroom units. The rooms features a bed which can be tucked into the wall during the day, thus creating a larger living room space. At night it can be lowered to transform the accommodation into a bedroom. The Ritz also includes retail space and a gym, together with an outdoor running track and swimming pool, tennis and badminton courts and a basketball area. ‘We are bringing the latest home technology to our customers at a time when consumers are looking for more with less,’ said Rizwan Sajan, founder and chairman of Danube Group, who added that the homes are aimed at new couples and small families. The launch comes at a time when the luxury part of the property market is experiencing a softening, but Sajan pointed out that some 18,000 new homes are needed in the emirate over the next five years. ‘Real estate is a long term business and I am a firm believer in the long term sustainability of Dubai’s economy, which is very resilient. The current supply of 12,000 to 13,000 homes per annum falls well below the anticipated demand. Besides more than 80% of Dubai’s population live in rented homes,’ he explained. ‘With property prices coming down to a more realistic level we see the possibility of a large scale migration to home ownership from rental homes,’ Sajan added. Meanwhile, around 250 dilapidated villas across Dubai which are regarded as posing a public health risk are to be demolished. According to Dubai Municipality many of the properties are caught up in inheritance disputes between family members and the rightful owner has neglected them, making them a threat to security and public health. ‘There is a possibility that these houses are used as a den for crimes and as a hiding place for illegals and fugitives,’ said Khaled Mohammed Saleh, head of the buildings department at Dubai Municipality. It is estimated that there are 713 abandoned houses across Dubai of which 303 have already been demolished and a further 154 have been renovated by their owners. The Municipality will now issue orders to the owners for the houses to be demolished and if they fail to comply the properties will be taken down and the owners charged. Continue reading
Irish property price growth slowing as new lending rules have an impact
Residential property prices in Ireland are continuing to increase year on year but the rate of growth has slowed considerably, the latest official data show Figures from the Central Statistics Office shows that in the year to November prices at a national level increased by 6.5%. This compares with an increase of 7.6% in October and an increase of 16.2% recorded in the 12 months to November 2014. The data also show that prices actually fell on a national level month on month in November by 0.5%. This compares with an increase of 1.6% recorded in October and an increase of 0.5% recorded in November of last year. In Dublin residential property prices decreased by 1.3% in November and were 3.3% higher than a year ago. Dublin house prices decreased by 1.2% in the month and were 3.1% higher compared to a year earlier. Dublin apartment prices were 6.1% higher when compared with the same month of 2014. However, it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland rose by 0.2% in November compared with a rise of 1.2% in November of last year. Prices were 9.6% higher than in November 2014. House prices in Dublin are now 33.8% lower than at their highest level in early 2007 while apartments in Dublin are 41% lower than they were in February 2007. Prices in Dublin are 35.8% lower than at their highest level in February 2007. The price of residential properties in the rest of Ireland is 36.2% lower than their highest level in September 2007. Overall, the national index is 33.8% lower than its highest level in 2007. However, experts think that prices will rise by around 6% in 2016 and point out that the decrease in prices in Dublin has more to do with new Central Bank rules on lending than a downturn in the real estate market. ‘Given that the Central Bank’s rules on high loan to value mortgages apply only to first time buyers in homes over €220,000, their impact has been felt most sharply in the capital where affordability is most stretched,’ said Conall MacCoille, an analyst with Davy Research. ‘The recovery outside the capital began almost one year later, so that affordability is less stretched, and there is probably more room for catch-up,’ he explained, adding that the firm expects property prices to rise by some 7% through 2016 as wages grow and tax cuts take hold. Goodbody economist Juliet Tennant also believes that the Central Bank’s new lending restrictions, which limit banks from lending any more than 80% of a mortgage except in the case of first time buyers, have had an effect. ‘Macro prudential rules are continuing to have a dampening impact on the Irish housing market. However, the… Continue reading
