Dubai – Mubasher: Sales prices and rents in Dubai’s residential sector stabilised during the first quarter of 2017, with signs that the sector is close to the bottom of its cycle, according to a JLL report.
"Given the continued slowdown in the Dubai economy, and its dependence on the global economy where growth remains uncertain, any recovery in residential prices in Dubai is unlikely before late 2017 at the earliest," according to Craig Plumb, head of research in MENA at JLL.
Listing of ENBD REIT on Nasdaq Dubai in Q1-17 followed the listing of the Emirates REIT on the Dubai Financial Market (DFM) in March 2014, which aims to improve liquidity and enhance flexibility in the market.
Other real estate investment trusts (REITs) are expected to follow this trend over time, so investors will have the opportunity to buy an interest in a broader portfolio of properties.
Although rents saw a decline over the past year (-7.9% for villas and -2.9% for apartments), either rents or prices of the apartment or villa segments did not see any change during Q1.
Commenting on the office sector, vacancy rates currently stand at 14%, reflecting the continued strength of demand for high quality and “smart” buildings.
Vacancy rates in the central business district (CBD) started to decline in Q4-14 despite the limited new demand,
A total of 1,500 units (apartments and townhouses) were completed in Akoya project, acquiring the lion’s share in the 2,600 homes completed during Q1-17. Around 14,000 homes could be delivered, assuming a materialisation rate of 50%, as actual completions are likely to be less.
Key projects are in the pipeline include Emaar’s master-planned communities, Dubai Hills Estate and Arabian Ranches 2, and two apartment buildings (Burj Vista) in Downtown Dubai.
The hotels segment saw 1,100 keys in Q1-17, taking the total to 79,000 keys.
Further completions are expected this year with the renovation of The Address Downtown (196 rooms and 625 branded residences units) and the Viceroy on the Palm (477 rooms).
