News
Stay up to date with the latest market news
Dubai, 10 July, 2017: Cavendish Maxwell today released its Q2 2017 residential reports providing analysis and summary of apartment and villa/townhouse properties in Dubai and Abu Dhabi. The reports highlight price movements, rents and yield scenarios, residential supply as well as the macro-economic factors impacting this segment.
Price performance
Prices for apartment and villa/townhouses in Dubai and Abu Dhabi have continued to decline during the first half of the year. In Dubai, Victory Heights, Business Bay and International City clusters all experienced year on year declines of more than 1.5%on an average in Q2 2017. In Abu Dhabi, villas/townhouses in Al Reef and Al Raha Gardens have experienced annual declines of 2% on an average during the same period.
Rent performance
Rent declines were more pronounced among villas in Al Furjan and two bedroom apartments in Dubai Sports City and International City (clusters). These categories of units exhibited quarter on quarter declines of more than 2%. “Landlords continue to be flexible in lease terms and rental amounts to attract tenants who are currently benefiting from increased supply and rent declines across the market”, said Manika Dhama, Senior Consultant, Strategic Consulting and Research at Cavendish Maxwell. “Payment through multiple cheques, first month rent-free are some of the options landlords are providing to reduce vacancy risk on their properties.”
In Abu Dhabi, rent declines were more pronounced among villas in Al Reef and apartments in Al Reem island, where rents declined more than 2% or more quarter on quarter. “The tenant profile in Abu Dhabi is currently more focused on affordable options and this is expected to continue as redundancies from oil price impact on businesses as well as recent mergers in the emirate which have affected high salaried senior executives more acutely,” said Dhama.
Transaction overview
In Dubai, off-plan sales accounted for the majority of total transactions in the first half of 2017. International City and Dubai Marina continued to lead the secondary market transactions this quarter, while the top locations for off-plan apartment sales were Jumeirah Village Circle, Dubailand, Dubai South and Business Bay. For villas/townhouses, majority of the secondary sales were completed in Reem (Mira), Emirates Living and Jumeirah Village Circle.
Residential supply
Approximately 3,100 residential units have been handed over across Dubai during Q2 2017 and 400 units have been handed over in Abu Dhabi investment zones during the same period. The majority of the units handed over during Q2 in Dubai were located in areas such as Silicon Oasis, Dubailand, Al Nahda, among others. In Abu Dhabi all the units handed over this quarter were apartments on Al Reem island. In Dubai, approximately 27,389 units are scheduled for delivery during the remainder of 2017, while in Abu Dhabi investment zones the scheduled delivery is 2,100 units. Actual completions may vary significantly.
Cavendish Maxwell Residential Survey
The Dubai report also draws on the Cavendish Maxwell Residential Survey conducted among agents in the emirate. For Q3 2017 the majority of agents surveyed predicted apartment and villa/townhouse prices as well as rents will remain unchanged. In terms of transactions, 56% of agents expect new buyer enquiries to increase, while 54% expect an increase in the number of agreed sales. The majority of those surveyed (54%) believe new seller instructions will also increase during the Q3 of 2017.
Stay up to date
This website uses cookies to improve your experience
Accept allCookie preferencesxCookie | Duration | Description |
---|---|---|
_ga | 2 years | The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. |
_ga_34E12VSHW6 | 2 years | This cookie is installed by Google Analytics. |
_gat_gtag_UA_66458947_1 | 1 minute | Set by Google to distinguish users. |
_gat_UA-66458947-1 | session | A variation of the _gat cookie set by Google Analytics and Google Tag Manager to allow website owners to track visitor behaviour and measure site performance. The pattern element in the name contains the unique identity number of the account or website it relates to. |
_gid | 1 day | Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously. |
cookielawinfo-checkbox-statistics | 1 year | This cookie is set by the GDPR Cookie Consent plugin to store the user consent for the cookies in the category "Statistics". |