Dubai Real Estate Report Q1 2018 by Asteco recorded an annual decline in villa and apartment sales of 6 percent and 9 percent respectively, with large villas at high price points generating limited interest, primarily due to lower investment profit associ
According to a new report ,affordable housing options remain at the cutting edge of Dubai buyers’ interest, with many banks and developers guarantee of minimum monthly salary of AED 15, 000 ($4,083) in order to purchase property in the emirate.
Dubai Real Estate Report Q1 2018 by Asteco recorded an annual decline in villa and apartment sales of 6 percent and 9 percent respectively, with large villas at high price points generating limited interest, primarily due to lower investment profit associated with such product.
John Stevens, managing director of Asteco, said, “We have seen a moderate increase in enquiries and transactions for high-end residential units, suggesting that albeit at a conservative level, there is still appetite for such accommodation.”
The annual rents decline for both apartments and villas, with average of 10 percent and incentives such as multiple cheques, rent-free periods, and the absorption of utility, maintenance and/or agent fees have become the norm.
He said some of Dubai’s popular communities have alleged decline in rents including Jumeirah Beach Residence by 15 percent and while Downtown Dubai, Dubai Marina and Deira rents fell by 14 percent.
Stevens added, “While on the whole, the residential sector has witnessed only a minimal decline of 1 percent quarter-on-quarter, it is important to note that newly handed-over, lower-end buildings in areas with significant supply potential have struggled with occupancy, particularly where rates and incentives were not aligned with the market.”
Asteco noted that approximately 3,625 residential units were delivered in Q1 and a total of 30,000 potentially to be delivered by Q4 2018.