uae real estate market highlights q2 2014 by asteco
DESCRIPTION
Roots Land Real Estate is your property partner in the U.A.E. We are committed to assisting you with the entire process of purchasing or selling your desired property. Our experience in Dubai and Abu Dhabi’s property markets has provided us with invaluable insight that is largely beneficial to investors.TRANSCRIPT
![Page 1: UAE Real Estate Market Highlights Q2 2014 By Asteco](https://reader035.vdocuments.mx/reader035/viewer/2022081817/579056c11a28ab900c9a920f/html5/thumbnails/1.jpg)
www.roostland.com | Dubai Real Estate Broker – Roots Land Real Estate
UAE Real Estate Market
Highlights Q2 2014 By Asteco
![Page 2: UAE Real Estate Market Highlights Q2 2014 By Asteco](https://reader035.vdocuments.mx/reader035/viewer/2022081817/579056c11a28ab900c9a920f/html5/thumbnails/2.jpg)
www.roostland.com | Dubai Real Estate Broker – Roots Land Real Estate
UAE Real Estate Market Highlights Q2 2014 By Asteco
The second quarter of this year saw a continuation of the slowdown in Q1 2014 residential
sales performance for Dubai with the market witnessing marginal growth, up 6% and 3%
respectively for apartments and villas in Q2 2014; but the latest market report from Asteco, the
Middle East s la gest full se i e eal estate o pa y, a ti ipates e e ed i te est a d a ti ity in Q3 2014.
H1 2014 activity was marked by sector stabilisation and consolidation as the market continued
to absorb the rapid growth witnessed in 2013. According to the Asteco Dubai Q2 2014 report,
interest shifted to peripheral communities such as Jumeirah Village, Dubai Sports City and
Dubai Silicon Oasis, as many prospective purchasers remained priced out of the more popular
areas of the city such as Downtown Dubai and Dubai Marina.
We recorded positive growth rates of around 10% in Q2 for these areas, but at the same time
there was a decline in interest in the previously popular affordable communities of Discovery
Gardens and International City, which only registered minimal growth, indicating that they are
now topping out price-wise and any further growth will take them out of the affordable bracket.
–John Stevens, Managining Director, Asteco
A raft of recent new launches, including Dubai Properties Group projects such as Manazel Al
Khor in Culture Village, Rahat Villas at Mudon, and 200 new units at Remraam, have joined a
growing list of announcements with Damac also launching its NAIA Hotel and Hotel
Apartments, 34 premium Fendi Villas at Akoya Drive, and two hotel apartments at Jumeirah
Village.
Stevens also noted that sellers who raised their prices following the Expo 2020 announcement
are intent on maintaining their position, which has resulted in a reduction in transaction levels,
especially for higher priced properties within established communities.
With rents increasing steadily since 2013, many existing tenants have elected to remain where
they are and absorb the rent increase, as indicated by the RERA rental index, rather than start
from scratch and incur the cost of moving, agent commissions etc.
–John Stevens, Managining Director, Asteco
![Page 3: UAE Real Estate Market Highlights Q2 2014 By Asteco](https://reader035.vdocuments.mx/reader035/viewer/2022081817/579056c11a28ab900c9a920f/html5/thumbnails/3.jpg)
www.roostland.com | Dubai Real Estate Broker – Roots Land Real Estate
Abu Dhabi Market
A slowdown in transaction volume and more sustainable levels of rental and capital
app e iatio defi ed A u Dha i s eside tial se to pe fo a e a o di g to Aste o s Q 4 real estate report.
On average apartment sales prices increased by 4% quarter-on-quarter, and 29% since Q2
2013, while villa sales prices remained relatively stable over the same period, showing an
average increase of just 2%. Average apartment rental rates ran in parallel with villas recording
modest Q2 growth rates of up to 8%.
O goi g te a t p efe e e fo e e , aste pla ed o u ities d o e de a d fo apartments in prime developments within investment areas, while affordable villa locations
o ti ue to e popula , Je ry Oates, General Manager, Asteco Abu Dhabi.
Ma ket sustai a ility ill e fu the uoyed y A u Dha i s pla s to lau h its o e tal index this year, designed to create a more transparent market for UAE national investors,
regulating maximum rental in eases , he added.
The market received a vote of confidence from investors following the successful off-plan sales
launch by Aldar, with its Al Hadeel project at Al Raha Beach, selling out in a matter of hours and
Ansam on Yas Island selling approximately 300 units out of 540.
Abu Dhabi office leasing figures recorded moderate quarter-on-quarter rental growth of 3% for
G ade A fitted o e ial spa e he eas a e age uality G ade B o e ial ates e ai ed stable, for both fitted and shell & core.
On Abu Dhabi Island, Grade A office space achieved net effective rental rates estimated at AED
1,700 per square metre for fully fitted space; while rental rates for upscale Sowwah Square
remain unchanged over the last 12 months, as leasing is on hold pending confirmation of free
zone status.
Rental rates for Grade B office space stood at AED 800 per square metre for fitted and AED 700
for shell & core with good quality older stock also renting from AED 700 to AED 1,100 per
square metre.
![Page 4: UAE Real Estate Market Highlights Q2 2014 By Asteco](https://reader035.vdocuments.mx/reader035/viewer/2022081817/579056c11a28ab900c9a920f/html5/thumbnails/4.jpg)
www.roostland.com | Dubai Real Estate Broker – Roots Land Real Estate
Northern Emirates Market
Demand for affordable housing continued to attract new arrivals to Sharjah and Ajman in Q2
2104. The latest Northern Emirates market report from Asteco highlighted a slowdown in
residential rental growth rates as the supply and demand dynamic underwent a geographic
shift.
The emirate of Sharjah recorded 3% quarter-on-quarter growth for apartment rentals with
year-on-year growth dropping to 31% from 38%, whilst annual rates in the other Northern
Emirates of Fujairah, Umm Al Quwain and Ras Al Khaimah remained stable with nominal
increases of 2% and 1% respectively.
Bu ki g the t e d, Aj a s eside tial eal estate se to e ei ed a fillip, egiste i g a 7% i ease i Q 4 a d d i e y the e i ate s ult a-affordability, with two-bedroom
apartments available for between AED 30,000 to AED 45,000 per annum in comparison to up to
AED 80,000 in Sharjah.
Ajman is now taking over the mantle as the relocation destination for budget-conscious
residents as landlords in Sharjah ask higher than average rental rates, particularly for brand
new buildings in popular locations like Al Nahda, Corniche and Al Wahda. However, this
eagerness to capitalise on market opportunity is not being matched by transaction volume,
confirming that budget issues are still a key driver.
Sharjah in particular has benefited in recent months due to aggressive rental rate increases in
eighbou i g Dubai, but this ua te saw a deg ee of stabilisatio i Dubai’s o e affo dable communities, which led to a reduction in the number of residents choosing to relocate.
–John Stevens, Managining Director, Asteco