(MENAFN - Khaleej Times) Firm support to come from sector reforms booming economy
Abu dhabi experienced relative stability in rental prices during the first quarter. — kt file photoFollowing a buoyant first quarter that saw selling and lease price increases of between 10 per cent and 15 per cent the overall prospects for the uae real estate market remain bullish on the back of property sector reforms and a booming economy a market intelligence report said.
Abu dhabi’s upbeat market combined with dubai’s re-emergence as a leading global realty hub will sustain the momentum that began in the third quarter of 2013 said masood al awar chief executive officer of tasweek real estate development and marketing.
“the key drivers for enduring growth in the realty sector for this year will be transportation and infrastructure safe returns over various asset classes trustworthiness of the market increased transactions strong and continuous government support and innovative and increasingly ‘smart’ technologies” said al awar.
In the first quarter of 2014 real estate units in the uae recorded average selling and lease price increases of between 10 per cent and 15 per cent. this comes after reported highs of 35 per cent to 40 per cent in the fourth quarter of 2013 the tasweek report said.
“this relative lull in the property sector is attributed to the continuous delivery of new units into the market as well as dramatic rise in prices after dubai successfully won the bid to host world expo 2020” the report said.
“the uae real estate sector has witnessed significant growth in the first quarter particularly in dubai and abu dhabi. this is in terms of asset prices transaction volume and capital availability for refinancing rescheduling and repayments. we have to note that international investor sentiments have improved globally with better returns compared to risk elements” said al awar.
Abu dhabi experienced relative stability in rental prices during the first quarter except in the high-end and freehold properties which continue to command a high percentage of price increase it said.
“in general the abu dhabi realty sector looks forward to the launch of new mega projects announced last year in the city area and the al gharbia region. in the residential segment some areas have seen an increase in rents by almost 50 per cent soon after the abu dhabi government decided to remove the minimum rental cap of five per cent” the report said.
Prices continued to increase in the first quarter however at an average of 15 per cent particularly in luxury one- and two-bedroom apartment units. the selling prices have seen a slowdown in the same period averaging 10 per cent after an increase of 20 per cent in the last quarter of 2013.
Abu dhabi’s office property segment saw a decline of between 10 per cent to 15 per cent per square metre because of more supply of new office units than demand.
In dubai real estate prices immediately leapt by an average of 20 per cent post the expo 2020 win. however growth slowed down in the first quarter of 2014 bringing the property prices to a more realistic level of a 10 per cent to 15 per cent increase. this trend will continue for the year as businesses wait for the government to announce projects related to the world expo according to tasweek.
“while dubai’s residential property market has been on a boom the leasing prices for office spaces on the contrary have been slower with a growth noted only in properties located in prime areas such as shaikh zayed road that has seen the highest increase in leasing prices.
“the best deals for residential rental properties can be found in international city dubai silicon oasis discovery gardens and tecom while international city dubai silicon oasis dubai investments park tecom and dubailand offer good buying propositions. in the office category the best deals for buying as well as renting are available at dubai investments park jumeirah lake towers and dubai silicon oasis” the report said.
Abu dhabi experienced relative stability in rental prices during the first quarter. — kt file photoAbu dhabi experienced relative stability in rental prices during the first quarter. — kt file photo