Report shows interesting Dubai Real Estate Properties price trend

Dubai real estate prices are experiencing some changes. Prices in older districts located in Dubai have are changing and adjusting, with Deirah and Bur Dubai topping the list. Meanwhile, properties in Dubai Marina are changing as well. Studio and three-bedroom apartments that are on sale saw a decrease of 18% and 14% respectively. Renting rates for studios stayed the same, while three-bedroom renting rates are decreasing by 7%.

This report from Dubizzle also says apartments in Dubai Marina is the most popular real estate in Dubai for 2 consecutive quarters, with a staggering 4.9 million searches for one-bedroom apartments between April and June this year. Sales prices here have been decreasing, with an 18% and 14% change in studio and three-bedroom apartments respectively. Dubai Marina’s popularity remained at the top spot for two consecutive quarters in a row, with an impressive location being the most searched during this year’s Q2 with over 20 million searches.

Property price tags for Dubai real estate’s prime location Palm Jumeirah, saw a change in sale prices as well.  Prices for studio and two-bedroom apartments are increasing from 1.45 Million to 1.54 Million and 3.2 Million to 3.5 Million respectively.

The other side of the city also had price changes. Real estate in Dubai’s Deira showed price increases due to a lack of new properties along a sustained demand by occupants. This is why even if prices in these so-called older areas are relatively more affordable than new property developments, there is still a price shift that makes it better aligned with property prices across Dubai. Rental prices for studio apartments in Deira climbed by 18%, while those in Bur Dubai went up from 60K to 65K. Three-bedroom unit prices in the same location also increased from 150K to 158K.

Asked to comment on the report, Dubizzle’s Product Marketing Manager for properties Ms. Ann Boothello said: “The Dubai property market is softening as per the price changes experienced in Q2 this year. Some areas have experienced while older areas in Dubai showed price increases in reflection to a maintained level of demand for these older units and the alignment of their prices with those in newer areas in Dubai. An example of this is that now a studio in Bur Dubai is rented out for AED 65,000 annually and in Dubai Marina at AED 70,000.”

She continued to say that “prices of properties for sale decreased across Dubai, with the exception of studios and 2 BR apartments on the Palm Jumeirah increasing up to 6%. Abu Dhabi on the other hand, experienced price increases in for sale and rent properties; however Al Reem Island saw a drop in prices for 1, 2, and 3 bedroom apartments.”

New Luxury Hotel to be operated by Jumeirah Group in RP Global’s Mixed-use Development

RP Global, the leading Dubai real estate property investment company, has appointed the global luxury hotel company Jumeirah Group, to operate a mixed-use development under RP Global’s US$1-billion iconic tower. Called the Jumeirah Business Bay, this new piece of real estate in Dubai will feature a hotel with 200 rooms, 350 serviced apartments, and 290 luxury residences under the Jumeirah brand.

Offering stunning views of the Burj Khalifa and other parts of the city such as Downtown Dubai, the super-tall tower will have a floor area amounting to over 3 million square feet. Designed to be an urban luxury destination, the tower will showcase a rich variation of food and beverage stalls, an award-winning Talise Spa and Health Club, banquet and conference facilities, and an open-air roof top Sky bar. Situated just behind the Dubai Metro station in Business Bay, this new Dubai real estate property is designed by the distinguished Atkins Global architectural and engineering firm. Atkins Global is also the one responsible in designing the world-famous Burj Al Arab hotel.

Among the tower’s exhilarating features is its sky attraction. It’s a dynamic interactive experience literally higher than anything else. The tower gives its visitors stunning vantage points high above Business Bay.

 “RP Global is a company committed to excellence, and we look forward to working together and operating this outstanding property. Jumeirah has a reputation for luxury and exceptional hospitality, and our partnership reflects the strong synergies between Jumeirah Group and RP Global. As Dubai moves towards its tourism vision of receiving 20 million visitors a year by 2020, we are proud to be strengthening our Jumeirah portfolio in Dubai”, says Jumeirash Group’s President and Group CEO Mr. Gerald Lawless.

Dr. Ravi Pillai, chairman of RP Group of Companies, which is the holding company of RP Global, stated that “We are investing close to US$1 billion of our own resources into Dubai’s real estate sector to develop a world-class tower that will be operated by the esteemed luxury hospitality brand, Jumeirah Group. RP Global is committed to superior quality and timely delivery and like the Jumeirah Group, we strive to create well designed, innovative lifestyle concepts for our buyers. Dubai’s resident population is growing rapidly and we are looking forward to adding an iconic tower to Dubai’s skyline in partnership with Jumeirah.”

The management agreement between the two companies was signed at a ceremony that took place at the Burj Al Aram, Jumeirah Group’s flagship property. Jumeirah Group currently has 23 hotels in operation scattered in Europe, the Middle East, and Asia. It has 25 more in the pipeline under the Jumeirah and Venu property brands.

RP Global is the real estate development company of RP Group of Companies, a conglomerate established by Dr. Ravi Pillai. It has operations in 20 cities across nine countries. The group has a wide-ranging stake in different industries such as hospitality, construction & industrial development, healthcare & wellness, and education & trading. It has executed projects worth over US$25 billion globally, and operates across Middle East, Africa, Australia, and Asia.

The Maturation of Real Estate in Dubai

 Dubai, compared to its neighbouring emirates and countries within the GCC, has been known to have a very distinct freehold on the way they conduct business. However, there has been a requirement for increased regulation in the market recently, which means that the free-reign of freehold might be coming to an end. But not for the wrong reasons.

After the property bubble collapse left so many investors with bad experiences a few years ago, it was high time for the government in Dubai to enforce strict procedures and rulings for the Dubai real estate market.

Over recent years, Dubai has seen increases in regulations and increased amount of stability in the market in what experts proclaim as a maturing of the market.

Typically there are many definitions of what may defined as a mature market, but a few key identifiers could be described as follows:

•    A market is mature when prices have reached a state of normalcy.
•    When movement in customers’ needs and desires do not appear to be evolving rapidly.
•    Consolidation by leading competitors reducing competition.
•    Market shares of leading competitors being solidified and changing gradually, if at all.
•    Regulatory frameworks, legal protections and regulations aimed at protecting consumers and businesses are in place and implemented.
•    Steady regular profits and growth for the developers.

The United Arab Emirates has only recently been classed as an emerging market by the MSCI. This means it has a long way to go before it’s on par with more developed countries and cities. But looking at the identifiers above, there are a few items pointing to market maturation. So we asked Andrew Chambers, CEO of GGICO Properties and long time real estate veteran, for enlightenment as to what would be the signs that a real estate market is maturing?

INCREASED REGULATIONS

-    Increased regulations aimed at reducing short term speculation and flipping is when speculators buy, with minimal deposit down and flipping or reselling before property is even registered with Oqood. Oqood is a service provided to developers by the Dubai Land Department which aims to ease the registering of all types of contracts between off-plan properties developers and buyers. It allows developers to manage their off-plan properties and participants within a simple framework and user-friendly bilingual Arabic-English interface.

While this was rampant before, it is much less prevalent now—with RERA regulations prescribing registration of transactions. Also, the rate of capital growth of property has slowed tremendously compared with certain years over the last decade.

MORE NEGOTIATIONS

-    Buyer and seller expectations on a price to exchange are at least close enough to allow for realistic negotiations. At present, sellers are asking higher prices than buyers are willing to pay. This has slowed the rates of sale in the market.

LESS RISKY FINANCIAL LEVERAGE

-    When small firms or individuals borrow multiple times and speculate on “off plan” or projects with payment plans in hope that they can resell and make a premium before later payments due.

STABILIZING MARKET PRICES

-    We still see more of a supply driven market, which has suited Dubai’s great growth and has worked when viewed over 10 years or so. But with a steady, measured and considered growth, a planned release of products will help stabilize the market. The market remains a little oversupplied at the luxury end and the impact of lower oil prices and stronger dollar will undoubtedly dampen the demand from overseas investors. However, domestic demand at the mid-end remains inelastic to these macro trends and developers and investors that capitalize on this will be amply rewarded in the years ahead.

BROKERAGE MARKET

-    Tremendous steps have been and are continuing to be taken to control the behaviour of brokers. Also, the slow down clears out many non-performing agents and agencies. Less rogue agents and slowing down the amount of players in the market will be good for market confidence and stability.

AFFORDABILITY

-    The last decade has seen an enormous volume of Top End/Luxury properties become available, which has sold well. Unfortunately, this has left behind the requirements of regular, salary earning expat demands from those living and working here, with requirement for more modest housing that can be afforded from salaries and a level of mortgage. This is now starting to be addressed by some developers in areas such as SO and DSC, where more mid level property, with good payment plans allowing people to buy to occupy.

CLEARANCE FROM BANKS BOOKS OF TOXIC/PROBLEM STOCK

-    The past 5 years has seen banks stuck with many non-performing or incomplete properties in default. This is not good for a stable property market. This seems to be resolved now, with many projects restarted with adequate finance and good business plan to see the construction to completion.

SUMMARY

Whilst there is some way to go for Dubai to be recognized as what the world sees as a Mature Market, Dubai has well survived turbulent times and a number of the issues raised here either resolved or in the process of being resolved.

Nevertheless, it is still important to keep Dubai as being seen as a robust and very positive market position in the World’s eyes.

This can be helped with the continued investment in infrastructure and continual innovation and investment in such opportunities as EXPO2020, WC Airport growth, continued development of tourist attractions such as mid range hotels, theme parks, and other attractions to boost further Tourism growth.

Dubai’s retail optimistic with tourism’s wave

Dubai tourism industry’s strong outing in 2014 has clearly had a positive effect on the retail sector. Undeniably, these two sectors have been closely correlated, with millions of international and regional tourists flocking the emirate each year to enjoy what has become known as the fashion capital of the Middle East. Tourists are especially drawn to the many malls and high-end luxury brands that exist in the emirate. Even as Dubai maintains its high rank in the world of retail, the sector continues to cater to an ever wider market. New mixed-use developments and mall expansions are highlights in the city’s retail real estate space.

CBRE’s global market research report “How Global is the Business of Retail?” 2015 edition shows that Dubai retained its position as the second most important international shopping destination globally for the fourth consecutive year, behind London. Dubai has a presence of 55.7% of international retailers, only less than 3% behind London (58%). Last year, Dubai attracted 45 new international brands with high-profile retailers including Hollister, Cavalli Caffe and McQ Alexander McQueen opening outlets in the emirate.

Top target markets new entrants

The growth in Dubai’s retail sector is linked to a strong economic recovery, the increase in consumer confidence and growing retail supply, along with government support to boost tourism. According to Emaar Malls, the Dubai Mall welcomed almost 80 million visitors last year, up almost 7% from 75 million visitors in 2013-further testament to the growing appeal of the Dubai Mall as a major retail destination for international tourists. Around 60% of The Dubai Mall visitors last year were reckoned to be UAE residents and other GCC tourists, while the other 40% were tourists from outside the Dubai's Retail Sector - retailers regional expansion.

Chinese tourists proved to be one of the biggest draws for Dubai’s hospitality market in 2014, with a 25 percent year-on-year growth in Chinese tourists. The UAE government recognises the tremendous potential the retail and tourism industries hold for the economic growth and in line with Dubai’s tourism vision for 2020, significant steps have been taken to achieve the target of attracting 20 million annual visitors by 2020. In 2013, the UAE government announced to grant on arrival visas to 13 additional nationalities from the European Union. Measures such as these will positively impact the tourism sector and enable the emirate to attract more business and leisure travellers, thus giving boost to the retail sector and further strengthening Dubai’s competitive advantage in the global arena.

Dubai remains the clear destination of choice for the majority of brands looking to enter the region for the first time, frequently using the emirate as a stepping stone to wider regional expansion programmes in the GCC. While 2015 is expected to be more testing for the tourism sector in view of the falling oil prices and economical and political uncertainty in some countries, Dubai however has strongly positioned itself as the premier tourist and leisure destination in the Middle East making it relatively resilient to market fluctuations.

The current retail stock in real estate in Dubai measures around 2.34 million sqm. with a retail supply pipeline of around 675,000 sqm. between this year and 2018. This retail pipeline consists mainly of existing mall expansions, including those of The Dubai Mall, Mall of the Emirates and Ibn Battuta Mall. These are in addition to the new malls – Nakheel Mall and The Pointe on the Palm Jumeirah-currently under construction. Additionally, there are key master plans to be developed in the coming decade, mainly Dubai Creek Harbour and Mall of the World. The malls envisioned there will be larger than Dubai Mall, which will potentially change the emirate’s retail landscape drastically.

With plenty to do, excellent infrastructure and world-class shopping and hotel facilities, tourism-driven retail growth in the emirate is set to continue.

Original post from Roots Land Real Estate

The Dubai Retail Real Estate Market Prediction vs Reality for 2015

Demand for Dubai’s retail sector was strong in 2014 driven by growth in spending, a relatively large demographic of young affluent adults, increasing tourist demand, and growth in GDP. The Dubai Mall attracted a record 80 million visitors in 2014 and retailers experienced 14% growth in sales compared to 2013, accounting for approximately 5% of Dubai’s GDP.

The Beach, at Jumeirah Beach Residence, launched in 2014, and City Walk (Phase One) saw a number of new outlets open during the year, including brands from outside of the GCC. Both of these schemes are outdoor lifestyle destinations offering a mix of retail, F&B, wellness and entertainment. Nakheel also announced the development of a number of community retail centres in 2014, with Discovery Gardens and Jumeirah Park Pavillion now open.

Two significant retail IPOs took place in 2014 in Dubai. The first of these was Marka, the UAE’s first public joint stock company focused on retail and hospitality investment, and secondly, Emaar Malls Group. These listings mark a key change in retail market sentiment, evidence by significant investor interest in the IPO and over subscription, following a five year IPO lull since the onset of the global financial crisis and political unrest in the region.

Predictions

1.       Retail trends witnessed in 2014 show that consumers are demanding more than just shopping amenity from malls. Retail environments have evolved to integrate wellness, leisure, F&B and lifestyle to enhance the visitor experience and appeal to wider demographics. We predict this trend will continue in 2015 and will differentiate further between prime and secondary malls, especially in the context of large planned increases in supply.

2.       Dubai’s status as a leading retail destination globally is predicted to continue to drive demand from world renowned retailers. Apple has announced that it will open a new regional store in Dubai in 2015, which is expected to be their biggest outlet in the world. We predict additional demand from leading retailers for flagship stores, who have not yet debuted in Dubai.

Reality

The first quarter of 2015 continued to see quiet activity in Dubai’s real estate market. The retail market continues to be constrained by the slowdown in spending, restricting overall growth levels.

The first quarter saw Dubai’s retail market remain largely stable. Despite recording strong annual growth levels, average retail rents registered no quarterly increases. Similarly, vacancy levels remained at 8% as no major deliveries took place, except for the handover of ‘Box Park’ by Meraas. The subdued nature of the retail market comes as the industry copes with a drop in the number of visitors from Russia, while the weak euro threatens visitors from the Eurozone. Performance of the retail market is expected to remain stagnant throughout 2015, following estimates of a slowdown in retail sales growth figures. The latter is likely to put pressure on retailers and squeeze out some of the small & midsized tenants as they become burdened with achieving targets to meet high rents.

 According to statistics issued by Visa, the total Visa card spend in the first 2 weeks of Dubai’s Shopping Festival (DSF) 2015 increased 12% Y-o-Y to reach USD 54 million. In terms of spending growth patterns, restaurants witnessed the largest annual increase; 31% compared to 2014 figures. Predictably, visitors from Saudi Arabia emerged as the top spenders, contributing USD 35 million to the UAE’s economy, and representing a 29% Y-o-Y increase. Given the general stability in the sector, these figures portray the significant impact the event has on Dubai’s retail market.

SOURCE: Roots Land Real Estate

Dubai Development Legal Requirements from Al Zahmy

Dubai real estate requirements is based in the conditions made for the real estate developer business in Dubai. The real estate developer is defined under law as: “Any natural or juristic person licensed to purchase and sell properties with a view to developing the same with such definition including the main developer or sub-developer.”

In addition, real estate development is defined as “Development of multi-storey buildings or complexes for residential and commercial purposes.” The Government of Dubai developed clear and simple conditions for licenses. It supported these conditions with strict requirements to determine the duties and liabilities of the parties involved in the real estate development together, with safeguarding the same parties by imposing strict penalties against those who breach such provisions. These actions ensure transparency and bolster confidence in the real estate sector in hopes to attract investors to the city. The development of the real estate sector remain promising despite challenges.

Licenses 

In order to proceed with a real estate development project, the real estate developer shall comply with the provisions of the law governing the off-plan sale of the real estate properties. This is the most fundamental element of real estate development as it represents a business by offering real estate units to investors against installments with a view to achieving profits together with a parallel endeavor to convince banks of the profitability of financing real estate development projects.

The local lawmaker in Dubai determines the legal body governing such a business in the Land Department of the Government of Dubai, which is responsible for maintaining a special register for real estate developers, and determining the banks in which the developers and financiers can deposit the installments of the real estate units under the account of the real estate project. Accordingly, since inception, the real estate developer has to open the escrow account, in which the amounts paid by the purchasers or financiers of the real estate units sold off-plan are deposited.

Article (3) of Real Estate Development Escrow Account Act (8) of 2007 stipulates that the provisions of this law apply to those who sell units off-plan and receive payments from purchasers. Further, Article (4) emphasizes that no developer may engage in such business, advertise in local or foreign media or participate in exhibition for promoting real estate units or properties sold off-plan unless it is registered in and licensed by the Land Department in Dubai represented by its director general.

Article (7) of the Act stipulates in relation to the real estate escrow account that any developer who wishes to sell units off-plan must submit a request to open an Escrow Account and attach the following documents:

(1) A certificate of membership in the Dubai Chamber of Commerce and Industry;

(2) Trade license;

(3) Title deed of the plot to be developed;

(4) A copy of the contract concluded between the master developer and the sub-developer;

(5) The initial architectural designs and engineering drawings approved by the Competent Entities and the master developer;

(6) A financial statement of the estimated cost and revenues of the project approved by a certified chartered auditor;

(7) An undertaking by the sub-developer to start the construction works of the project upon having obtained the approval of the master developer for off-plan sale, or an undertaking by the master developer if there is no sub-developer; and

(8) A standard sale contract between the Developer and the purchaser.

All such established conditions are required for opening the escrow account that shall be accompanied by an agreement made in writing between the real estate developer and the escrow (the bank in which the payments made by purchasers of units sold off-plan or by the financers of the project are deposited). Such agreement shall determine the account management conditions, rights, and obligations of the contracting parties with a copy thereof being deposited with the Land Department.

Now, to tackle some of the real estate developer’s obligations, the following question must be answered:

When is the real estate developer deemed late in the performance of its obligation to complete the project?

Real estate developer delay in the performance of its obligations to complete the project is a very considerable, albeit expected risk associated with building and construction agreements with their diversified requirements. Such requirements include the approvals to be obtained from governmental bodies and the duties of the developer, the main contractor, and subcontractors. Therefore, a specific body shall be nominated to bear solely such liabilities and risks in consideration of the investment advantages, margins of profits, and speculations.

Because of this, the lawmakers has not left this issue to the will of developers or investors. Instead, the Government of Dubai has specifically determined the standards relating to the issues that the real estate developer may encounter while executing the real estate project.

The review of the real estate law indicates the cases where the real estate developer is deemed in default in the completion of the project, Article (21) of the Executive Council Resolution No (6) of 2010 approving the Executive Regulations of Law No (13) of 2008 Regulating the Interim Real Estate Register in Dubai expressly states the reasons deemed beyond the reasonable control of the real estate developer, as follows:

(1) If the plot where the project is to be constructed is expropriated.

(2) If a government body has frozen the project for re-planning reasons.

(3) If a building remains or manuscripts are discovered within the site of the project.

(4) If the Master Developer makes alterations to the project site entailing the alteration of the project boundaries and area in a manner affecting the performance of the sub-developer’s obligations.

(5) Any other grounds to be estimated by the Agency. 

Strict Penalties for Violations

Powers vested in dealers and investors are subject to providing a secure, safe and stable investment atmosphere where the investor has broadest credit powers by entering into off-plan sale agreements with investors together with concluding banking finance agreements with banks and financial institutions to finance the real estate project.

Accordingly, the lawmaker has ensured the proper guarantees for both investors and banks. In this regard, Article (16) of the Real Estate Development Escrow Account Act (8) of 2007 stipulates that without prejudice to any penalties stipulated by any other legislation, an imprisonment sentence and a fine of at least one hundred thousand Dirhams (AED 100,000), or either penalty, shall be imposed on those who:

(1) Engage in Real Estate Development activity in the Emirate without a license;

(2) Provide the Competent Entities with incorrect documentation or information in order to obtain a license to practice the Real Estate Development activity;

(3) Knowingly offer for sale Units in fraudulent Real Estate Development projects;

(4) Steal, appropriate, or forfeit any amounts of money delivered to them for the purpose of implementing Real Estate Development projects;

(5)As for auditors, deliberately preparing a fraudulent report upon auditing the financial standing of the Developer or deliberately failing to disclose material facts in their report;

(6) In the case of consultants, knowingly certifying fraudulent reports on a Real Estate Development project; or

(7) In the case of Developers, dealing with a real estate broker who is not registered on the Real Estate Brokers Register maintained by the Department in accordance with Bylaw No. (85) of 2006 concerning the Real Estate Brokers Register in the Emirate of Dubai.

Furthermore, Article (17) stipulates that the real estate developer shall be de-registered and punished with penalties set forth in Article (16) in the cases where:

(1) It is declared bankrupt;

(2) It fails, without an acceptable reason, to commence construction works after the lapse of six (6) months from the date on which he was granted permission to sell Units off-plan (as may be estimated by the Land Department in Dubai);

(3) The license granted to the Developer by the licensing entity is revoked;

(4) It commits any of the violations stipulated in items 2, 3, 4 and 5 of Article (16) of this Act; or

(5) It violates any of the laws and bylaws regulating the activity of Real Estate Development in the Emirate.

Original post from Roots Land Real Estate

Real Estate in Abu Dhabi Experiences Significant Growth in the Real Estate Sector for 2014, 2015 Looking Better

Villa prices raised by 16% and apartments prices go up by 15%. Rental rates went up by 10% apartments and 9% for villas; even rental rates increased by 10%, and 9% for apartments and villas respectively. This means that the demand for prime spaces continues to grow.

For 2015, investors in the real estate sector in Dubai and Abu Dhabi can expect continued rental growth and stable capital values, thanks largely in part to the strong performance in 2014 according to the latest Abu Dhabi real estate report from Asteco, Middle East’s largest independent full service real estate company.

In the Abu Dhabi Property Review: 2014 Highlights & 2015 Outlook of Asteco reported that Abu Dhabi’s real estate market had experienced growth over the recent years and 2015 will continue this trend. There will be a stream of growth in real estate, specifically in rentals and investments.

On 2014, the average sales rates for apartments increased by 15%, villas 16%. Volume of transactions declined in H2 due to the shortage of quality projects for sale in the secondary market, which is a good sign for real estate investors because the demand clearly outweighs the supply. The high sales volumes experienced at the newly launched projects in Ansam, Al Hadeel and Mamsha Al Saadiyat proved that demand for quality projects exists.

“Popular master-planned developments for sale included Saadiyat Island and Al Raha Beach while Reem Island proved to be an attractive area providing more mid-market units. We expect apartment sales prices to remain stable this year as the market becomes more competitive due to the imminent handover of new projects,” said Jerry Oates, General Manager, Asteco Abu Dhabi.

Year-on-Year comparisons starting from 2008 to 2014 highlight the continuous apartment sales price growth since 2012, up by 48% for all areas combined. Sales price in Al Muneera at Al Raha Beach is now priced at an average of AED 1,425 per square foot, up 21% compared with last year. Meanwhile, rates at Reef Downtown also climbed 21% to an average of AED 1,000 per square foot. Marina Square also saw a 17% increase to an average of AED 1,375 per square foot.

Villa sales prices had strong growth too, growing 47% on average for Al Raha Beach, Golf Garden and Al Reef Villas during the period.

According to the report, the villa sales market will be almost stagnant as there will be limited prime and high-end villa projects available for sale in the primary and secondary markets in 2015.

Rental rates for apartment were up by 10%, while villas rentals rose by 9%. A prime two-bedroom apartment currently rents for AED 175k-180k per annum with high-end units achieving AED 140-175,000.  Mid to low-end units records an affordable AED 90k-120k.

Villa rental rates are expected to increase during 2015 due to a shortage in quality villa units with occupancy rates expected to remain high.

An average four-bedroom villa could be leased for AED 239,000 per annum in Q4 2014.

The biggest increases in rental rates in 2014 were on Saadiyat Island and Marina Square on Reem Island. The year was also marked by a positive level of transaction activity as tenants continued their flight to quality.

New mid to high quality developments at still relatively affordable rents are encouraging relocation by tenants to upgraded accommodation, with older properties and lower quality projects being placed under increased rental and occupancy pressure.

The Abu Dhabi rental market in 2015 is expected to see continuous strong levels of demand. A range of new projects are due for handover in 2015 including an anticipated 13,000 apartments and villas which will come online, will have an impact on the Abu Dhabi real estate market by creating greater competition, particularly in apartment rents.
-Jeremy Oates

Asteco expects this to continue in 2015 with occupancy rates in popular developments maintaining their current high levels. 

“The Abu Dhabi rental market in 2015 is expected to see continuous strong levels of demand. A range of new projects are due for handover in 2015 including an anticipated 13,000 apartments and villas which will come online, will have an impact on the Abu Dhabi real estate market by creating greater competition, particularly in apartment rents,” said Oates.

Abu Dhabi’s office market was stable in 2014, as landlords of single-owned buildings maintained their asking rates. However, it is anticipated that as new developments such as ADDAX Tower on Reem Island hand over during the year, rates for multiple-owned office space in the Investment Areas could come under pressure as individual landlords compete to secure tenants. 

Since 2013, the Abu Dhabi real estate market has continued to strengthen, a trend Asteco predicts to continue throughout 2015

Source: Roots Land Real Estate

Dubai Property Market Update - Dubai Properties

The real estate in Dubai and the UAE has experienced a breakthrough this year, following the positive performance of the market last year, 2014. This is a major sign of growth and confidence for all the players in the field, especially right after the plummet of the real estate industry during the recession. There have been many improvements made by the industry recently. It has matured in terms of best practice, and serving up regulations & laws to protect both the investor and the developer. These changes have made a positive contribution to ensuring controlled, sustainable market growth in the years to come.

The latest industry reports have reflected a slowing, albeit gradual, pace of price increase; which means that these changes made are positively impacting market behaviour.
From a Dubai Properties perspective, the market this year has put us in a desirable position to build on the strategies that allowed us to experience growth across our portfolio in 2014.

Last year, the demand from investors for residential projects such as Dubai Wharf launched at Cityscape has continued to perform strong, and we expect the same performance from projects that we’ll be addinf this year. As noticed, other DP developments have recorded sell-outs and prompted the release of further units last year. 

We believe 2015 will build on the success that we made last year. For the real estate market, and for DP in particular, our strong sales has been a clear reflection of not only the positive market conditions, but also our successful strategy to develop practical, high quality, and sustainable projects in every segment and area of Dubai that offer essential amenities and facilities to enrich the lives of residents and end users.

DP has already delivered over 36,000 residential units, 2.8 million sq. ft. of office space and over 1.2 million sq. ft. of retail space to the market across key areas of Dubai. The main projects that were launched in 2014 include: Mudon, Remraam, Manazel AlKhor, and Dubai Wharf, some of which, as said earlier, experienced sell-out successes.

DP will continue to develop a growing portfolio of retail, commercial, residential, hospitality and mixed-use projects, and we are still continuing to grow, as future projects across all sectors are being put in the pipeline. These aim to be tailored to meet the needs of real estate investors in the region. We will continue to align our business with the current market demand by launching new projects that provide strong investment opportunities. 

Collectively, the real estate industry in Dubai is continuously experiencing strong growth with investors looking for ‘value for money’ projects across the city with completed infrastructure, accessibility and quality building and finishing. Our projects will continue to meet this market demand in line with Dubai’s growth across the residential, commercial, and retail sectors while continuing with the strategy to develop projects in prime locations of Dubai. 

Winning the Expo 2020 presents a huge opportunity for Dubai’s real estate industry, and as a leading developer with a wide range of projects in every segment and area of Dubai, we are well-placed to capitalise on the increasing requirements which this will bring. 

Moving forward, we plan to launch more projects that cater to the increasing population expected in Dubai over the coming years, from affordable apartments, to villas & townhouses, and high-end luxury accommodation across key areas of Dubai.

Mohammed Al Habbai

Chief Officer for Urban Planning and Infrastructure, DPG

Original post from Roots Land Real Estate