Fall In The Rents Of Abu Dhabi In Second Quarter, Forecasted To Fall More…

During the second quarter this year, the rents of the apartments, villas, and offices fell and it can witness further drop, according to a new report. Reconfirming the earlier research done regarding the rents under stress for the rest of the year is because of the new supply increase.

In the second quarter, the apartment for rents in UAE went down by 4%, while the prime and high-end properties witnessed a 3% drop. The mid market properties faced a softening of 5%. Around 600 apartments were handed over and 2000 additional units are estimated to be finished in the coming 6 months which would result in further pressure on rates. This year will go to be challenging for the Dubai real estate industry.

The rents were declined in the second quarter and the trend is likely to persist for the remaining year. The leasing contractor said that the rents in Abu Dhabi we expected to decrease throughout 2017 because the companies were cutting costs. Many expatriates have left and because of this, the rents decline.

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Picture Courtesy: www.dayofdubai.com

High-end apartments, according to Asteco in Central Abu Dhabi recorded 4% decline and of Corniche-2% and Khalidya and Bateen-2% respectively. For lower end properties, the rental decline in the similar locations was subdued relatively at 2%.

Though the sales of the apartments were relaxed by 4% quarter by quarter and 8% year by year, the sales activity was marginally improved after the developers offered more competitive pricing to the customers.

The office rents got down by 9% in the second quarter of the previous year with certain units discounted reportedly up to 15% below the rates prevailing in the market. However the demand is still strong for the smaller units, they are being offered with incentives to retain the tenants in order to negate the lack of new take up.

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Categories: Abu Dhabi, Real Estate

Emirates Hills Villas Bringing in Dh 90M

Huge property deals have started to become a trend in Dubai now, the city which is the most sought after for the place of residences around the world. The transaction record form this year’s April and may give away the indication. Dubai has witnessed many super luxury villas and apartment transactions worth of 25,812 sqft villa in emirates hills which brought in Dh 90 million in the May.

The villas of Emirates Hills are the first choice for the extreme rich. Palm Jumeirah was shut with a 7,762 sqft selling for Dh 84.2 million in April, as per Luxhabitat, a real estate agency. For the apartments group, costly transactions were recorded in second quarter of Dubai Marina, Palm Jumeirah and Culture Village. The most expensive one was sold for Dubai Marina property of 14,349 sqft for Dh 30 million.

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Picture Courtesy: famproperties.com

High end real estate agency, Luxhabitat done an analysis aimed at marketing, designing and selling the properties of high end real estate in the area which said that the secondary residential market witnessed an upturn in the second quarter this year because of amount of transactions by 4% as compared to previous quarter.

According to the report, the prime residential space is built of properties which lie on high end Dubai market spectrum. The 12 core areas which consists of this categorization are Al Barari, Arabian Ranches, Dubai marina, downtown Dubai, Emirates Hills, Dubai Marina, The Lakes, Springs and Meadows, Jumeirah Golf Estates, Jumeirah Beach Residence, Jumeirah Islands, Jumeirah Lakes Towers & Victory Heights.

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Picture Courtesy: s-ec.bstatic.com

There has been deflating of price evolution. Concerned with the second quarter, the prices and area of prime residential went Dh1482 sqft, said the MD of Luxhabitat. The prices are at same level as last quarter of the year before. Last year, at the third quarter, an upward trend was seen and since then the prices are rising on a constant basis.

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Picture Courtesy: cdn.decoist.com

The number of transactions in the second quarter was Dh3.6 billion. There was a rise in interest for purchasing villas in the prime areas. There was a 7% rise in the transactions volume for each villa since last quarter. Around 62% of the total transactions in the second quarter were for apartments with Palm Jumeirah leading with Dh771 million, followed by Dubai Marina & Downtown Dubai (Dh667 million and Dh340 million resp.). The second quarter results are delighting and clearly reflect the positivity right now and the confidence in the market.

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