Signs of selective gains are starting to show up in Dubai’s property
market — for the first time in several quarters, sales of Dh10 million
and plus villas are seeing a marked improvement. Their sales nearly
“doubled” in the first three months compared to the quarter previous,
according to first quarter 2016 data from ValuStrat.
In fact, “their share of overall villa registrations increased from
5.7 per cent in the last quarter to 11.1 per cent now,” said Haider
Tuaima, Research Manager. The spike may have had to do several off-plan
villa launches that happened in recent weeks and finding favour with
investors. Much of the 2016 supply will come from projects carried over
from last year. The off-plan residential projects launched in the first
quarter of 2016 should add more than 2,000 units to the residential base
in the years up to 2021.
Long-term capital appreciation
After a relative “stable” nine months relative to pricing, ValuStrat
research reckons that more end users are “seeking to get on the property
ladder, anticipating long term capital appreciation while saving on
monthly rental expenditure. “Dubai’s apartment market has shown a slight
quarterly improvement in values, up 0.1 per cent while the villa market
saw values marginally decline by 0.2 per cent,” it adds. “The median
apartment value in March was Dh1,319 per square foot and for villas it
was Dh1,361 per square foot.”
Source: Staff Report, gulfnews.com
