Dubai Property Market Summary for January 2017

February 02 2017
By Lookup.Ae Sales

General Trends 

  •  Continue to see families down-size living costs (when buying or renting). More expensive and larger properties remain on market for longer periods of time. 
  •  January 2017 certainly witnessed an uptick in closing activity. However, as per Land Department reports: transaction volumes are marginally slower Y/Y; value of transactions has increased Y/Y. 
  •  There is a continuous mental shift in the market for investors, home-owners, industry professionals that stability is the new market norm. 
  •  Many investors are convinced that the continued global economic and political shifts will benefit Dubai immensely. 
  •  2017 could end up being quite similar to 2016; i.e. slow & steady; more consolidation. But we are certain that off-plan sales will slow; which will be a benefit for this market. 
  •  2017 could also end up seeing prolonged periods of overseas buying activity as Dubai capitalizes on its hard earned image of stability, progress and diversification. 

Off-Plan Trends 

  •  The majority of demand is for studio and 1 bed units on a payment-plan; a developer that launches projects with the right studio / 1 bed feasibilities can still sell out rapidly.

  •  Secondary resales of off-plan remains weak with only a handful of developments (mainly those handing over soon) drawing wide-spread attention. However, many projects still command a premium and there is absolutely no indication of a lot of negative premium sales. 

  •  Developers are concentrating on existing developments rather than new mega announcements. However additional phases of Urbana, Villa Nova and Akoya Oxygen were announced.  The pace of sales is steady but unspectacular; a gradual shift that commenced in early Q4 2016. 

  •  Emaar did launch one high-end development in Dubai Creek Harbour called Harbour Gate

  •  Meraas launched a high-end G+1 plot project called Nad Al Sheba Gardens with exceptional price points of AED 300 - 350 per sq. ft.

  • Handovers


    Handovers commenced for Mira Phase 4, Legacy Nova Jumeirah Park, Champions Tower 1 

    Community to watch: Jumeriah Village Circle 

    •  JVC appears to be going through a period of revival; as the community continues to mature; it offers more affordability as we see some families down-size. JVC's locational appeal has grown with the opening of two new entrances in Hessa Street. 

    •  Some real quality developments are underway in JVC which will increase the area's desirability and value offering:  like Hameni Tower, SKAI, Ramada and Damac's serviced hotel projects

    •  JVC's popularity is further growing because of the wide array of real estate available: townhomes (1, 2, 3, 4 and 5 beds); villas (2, 4 and 5 beds); mid and high end apartments, office space, retail and serviced apartments. 

    • Economic News

      •  Nakheel posted its largest ever annual profit (close to AED 5 billion) on the back of its growing retail porftolio and completion of more older project pipeline. 

      •  Hospitality market in 2016 saw decrease in Revenue per Available Room; occupancy rates remained flat at 80%; though both indicators still remain the highest in the region. 

      •  Business sentiment up for manufacturing and services sector; down for trading sector. 

      •  Causes for optimism remain: the AED 47 B budget, infrastructure spending, Expo 2020 investments

      •  Despite increased regional and global instability since Jan 20th; Dubai remains well positioned to capitalize on the opportunities the current climate creates. 

      • Agency News

        •  Gulf Sotheby’s secured the exclusive sales rights for The one by Omniyat on Palm Jumeirah; a development which very well may end up as Dubai's most luxurious address. 

        •  It emerged the most expensive property sold in 2016 was an AED 53 million ($14.4 M) 24,000 sq. ft. mansion in Emirates Hills BY PH Real Estate. 

Harbour Gate - Apartments in Dubai Creek Harbour

Harbour Gate is an upcoming project featuring one to three bedroom apartments by Emaar in its master development, Dubai Creek Harbour. Call Kashif +971-55-9926426 for more info.

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