Bullet-Point Property: Dubai No. 107
The newspapers and property analysts have written headlines about falling prices and rents in Dubai over the last year.
Yes, some properties have been gradually falling in value over the last 12 to 18 months, but the newspaper articles rarely mention that prices in some buildings and areas have increased in value or at least have remained reasonably stable.
They have also neglected to state that many annual leasing rates have tracked these value changes and that rental yields have therefore remained largely unchanged in most areas.
The articles have also failed to make it clear that the most significant falls have been in the low-grade buildings which were a product of a rapid period of construction at the start of Dubai’s real estate boom in the early 2000s.
The market has seen increased demand and supply of well-designed, space-efficient apartments and villas and now we see many people fleeing low-rent/ low-quality properties in favour of high-quality buildings constructed by the city’s best developers, hence the lower prices and rents in some areas.
This flight-to-quality phenomenon has created a very distinctive two-tiered market.
We can often see price and rental differences between neighbouring buildings of up to 50%. Unlike other cities in the world, it’s less about location here and much more about the quality of the design, the standard of facilities within the property and in the community, the level of finishing, and the developer’s reputation for managing and maintaining their properties and your assets that are most important determining factors for long-term growth and return.
In summary, prices will reflect the inferior build quality, a lack of amenities and poor use of space and these negative factors will also drive both buyers and tenants towards the more attractive developments in the city because nowadays, buyers and tenants are no longer forced to settle due to a lack of choice.
This weeks property news:-
To coincide with this weekends national holiday to celebrate the 47th Year since the UAE was formed - Emaar has a limited time payment plan offer across almost all their projects of 50% in instalments over the construction period followed by 50% spread over three years post-handover, 2-yearservice charge waiver and 50% DLD Waiver
Ellington is offering a 5% discount on Belgravia Heights 1 & 2 and on their amazing project in Downtown called DT1 – this offer ends on the 8thDecember
Studio One in Dubai Marina – pay 5% now, 15% in 4 months and then 80% on handover in June 2019 plus receive a 100% DLD Waiver – with one beds from AED 960k and two beds from AED 1.38m see the brochure here for details
Marina Gate 1 and 2 still have two-bed apartments in this iconic waterfront building at the north end of Dubai Marina starting from AED 2.5m, pay over five years and receive a 100% DLD waiver – see the brochure here
The Burj Royale will be the last tower in Downtown Dubai offering panoramic views of Burj Khalifa and the Dubai Fountains – some very reasonable prices available with one beds all under AED 1.1m, two beds from AED 1.45m to AED 2.m and three beds from AED 2.6m to AED 2.8m – handover in 2022 with a payment plan to match – see the brochure here
Golf Suites is a luxury mid-rise residential building located along the newly opened Dubai Hills Golf-course in one of the very best located master-developments in the city. One beds for under AED 1m, two beds from AED 1.4m to AED 1.7m and three beds from AED 2.3m to AED 2.7m with delivery in 2021 – pay 40% over the build, 10% on handover and then 50% spread over three years post-handover -see the brochure here
Finally, one of my clients has asked me to mention that they have a luxury furnished one bedroom apartment in Downtown that is available to rent on a month by month basis. Its available over the Christmas and New Year period for AED 35,000 all-inclusive, less at other times of the year. It's on a high floor in the Address Boulevard with views over the Burj Khalifa and has direct access to the Dubai Mall. Email me for more details
Thank you for reading this far, please forward to someone that may also be interested.
Hope to see you very soon