In Cityscape real estate field the Asteco company prepared the status report of the real estate market of the United Arab Emirates in the first half of the year of the 2016th for the exhibition which took place in Dubai.
The Asteco company issued the special report to the Cityscape exhibition which took place in Dubai on a provision of the real estate market of the UAE in the first six months of the 2016th. According to the provided data, all emirates endure delay, but the heterogeneous picture is observed in the markets of Abu Dhabi and Dubai.
Against the background of delay of rates of completions of projects by builders in connection with the predicted excess supply of the residential real estate recession in the market of Dubai constituted about 2% and 1% for apartments and country houses, respectively.
The effect of drop in oil prices expressed in reducing government budgets within the last 18 months became the delay catalyst in Abu Dhabi where as a result of reducing workplaces within the last 6-8 months rental rates on housing decreased on average by 3%, and on the bonus real estate — for 4%.
"We see two unique pictures which are shown in residential sectors of both emirates. The solution of families from Dubai to reduce number and even to send spouses and children home in attempt to save means is curious" — John Stephens, the managing director of Asteco told — "We see similar signs and in Abu Dhabi with migration [...] from high-quality, large residential units in more available."
During the researched period in Dubai there were about 2 thousand new apartments, mainly in srednetsenovy and available segments, and also 200 country houses and townhouses in such projects as Siraj Tower in Arjan, Dubai Silicon Oasis, Ajmal Sarah Tower and Dubai Sports City.
In the report of Asteco keen interest in the area of Jumeirah Village from end users and investors is noted.
Prices for apartments continued to be in the majority of areas under bearish pressure with general price recession for 3% during the first half of the year 2016, however price level is still 64% higher, than in 2011. In a segment of country houses of a rate in general remained stable within the last six months with average increase by 0,3% and focus shift on houses of the smaller size in such communities as Arabian Ranches, The Springs and Mudon.
"From the point of view of lease demand for studios, two - and inexpensive three-roomed apartments will probably remain raised with the prospect of growth of rates in some areas as fillability level also grows" — Stephens told.
The limited offer of the new apartments issued in the first half of the year in the Abu Dhabi market led to general fall of rates for 3%. This tendency is characteristic also of the market of country houses, but in smaller scale — with recession for only 1%. Amounts of transactions in the capital are generally small as the prices remain rather high in comparison with other emirates.
"We still fix good level of demand on available products, such as townhouses in Al Ghadeer and Al Reef which don't endure recession of cost in case of sale that confirms appeal and deficit of such products in the market" — Stephens noted.
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