5 MIN READIQI Dubai Weekly Recap November 2017 (Week 4)

Dubai property owners pay hefty premium for luxury high-rises

Dubai property owners are paying as much as three times more than their neighbours living nearby to live in popular luxury high-rises, according to new statistics from the Propertyfinder Group.

In Dubai Marina, which Propertyfinder says is Dubai’s most popular area ‘by far’, residents pay a median price of AED 1,570 ($427) per square foot, according to Propertyfinder data through the end of 2017.

Residents of the La Reve or Silverine towers, however, pay 150 percent more than the median, with prices up AED 4,000 ($1,089) per square foot.

In Downtown Dubai, which is the third most popular community by search volume on propertyfinder.ae, the median price per square foot stands at AED 2,132 ($580). The median asking price in the Burj Khalifa, on the other hand, is almost twice that, at between AED 3,000 ($816) and AED 4,000 ($1,089) per square foot.

One of the areas which didn’t display this trend is Jumeirah Village Circle, where the median asking price for apartments is AED 925 ($252), compared to AED 1,000 ($272) in the area’s top luxury area, Milano by Giovanni Boutique Suite.

Propertyfinder notes that a number of luxury real estate projects are in development, meaning that the prices of existing luxury apartments are up for adjustment

Source: Arabian Businesses

Off-plan sales dominated Dubai property

With 2018 just a month away, it’s time to do a recap of the year gone by. Off-plan sales and generous payment plans by developers were the dominant themes in the Dubai property market. The popularity of off-plan sales, however, came at a price, with the secondary market taking a hit. Although the city witnessed rent declines in most neighbourhoods, the performance of the sales market was more fragmented.

Developers launched 30,000 off-plan units in 52 projects so far this year, all to be completed before 2021, estimates ValuStrat, a consultancy. Some of these plans stretch well beyond handover – payable, in some instances, even within 10 years after moving in.

“These schemes not only resulted in record transaction volumes as compared to the last two years, but also in exponentially increasing the share of off-plan transactions when compared to ready property sales, as a result, delaying an expected near-term secondary market recovery,” observes Haider Tuaima, head of real estate research at ValuStrat.

Off-plan projects now account for approximately 78 per cent of total real estate market transactions in Dubai.

“Transactions in Q1 and Q2 for this year have been flat price-wise, with a small dip in Q3. I expect Q4 to have a higher volume of sales,” says Rida Jaber, luxury sales specialist, LuxHabitat.

In the first 10 months of 2017, total activity (off-plan and ready) has already surpassed the full year of 2015 and 2016. On an annualised basis, it is expected to increase by 32 per cent in terms of volume and 27 per cent in terms of value.

In terms of total transaction value, Dh37.6 billion was invested in Dubai residential properties during the first nine months of this year, Dh23.5 billion of which was off-plan, estimates ValuStrat.

Source: Khaleej Times

Dubai property hunters have an average of 6% negotiating power

New data from dubizzle Property suggests an increased demand for the mid-market segment and highlights a gap between actual transaction prices and advertised amounts.

By comparing advertised sales prices in mid-market communities advertised on the dubizzle platform with transaction prices recorded by the Dubai Land Department’s public data, dubizzle property found that, on average, properties were priced about six percent higher than the price they were transacted at.

Of the areas analysed, Discovery Gardens was found to have the largest price gap, with properties selling at 20 percent lower than their advertised sales price. Coming in second was Jumeirah Village Circle, which recorded an 8 percent gap, and Dubai Sports City, with a gap of 2 percent.

“We always encourage our users to be aware of the average price for each area and provide them with as many tools and information as possible to make well-informed decisions. The knowledge of the price discrepancy in advertised versus actual price will empower our users and equip them with the negotiating power that is essential in the final stages of purchasing a property,” noted Ann Boothello, Head of Marketing at dubizzle.

Other areas analysed include Barsha Heights, Dubai Festival City, and Jumeirah Lakes Towers, which witnessed gaps of 15 percent, 7 percent and 8 percent respectively.

Source: Arabian Business

The Sanctuary: An oasis of calm in the middle of the city

Gulfstream UAE are close to launching one of the most exciting new communities in Jumeirah Village “The Sanctuary”; phase one consists of 355 units designated as Haven Apartments at “The Sanctuary”.

Gulfstream as a team bring to the table a broad range of expertise in design, construction and management. The Gulfstream management team have been in involved in the design and delivery of landmark real estate projects in Dubai including the Grand Hyatt hotel and Twin Towers on Dubai Creek.

Sebastian Carlton (Gulfstream UAE CEO) explains that Gulfstream’s focus, leading up to the Dubai Expo, will be to focus on delivering premium residential housing in niche locations for the local and expat market.

Sebastian Carlton explains that Gulfstream is delivering a project in Jumeirah Village that is quite unique, in that it brings together several plots in to one cohesive gated community.

The Sanctuary consists of ground and four storey apartment buildings, as well as ground and two storey villas. The project, “Haven Residences”, forms part of “The Sanctuary” Project in Jumeirah Village and offers a selection of studios, one-and two-bedroom apartments and three-bedroom villas.

Source: Arabian Business

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