April 6th, 2016 by Own A Space
In 2016 UAE’s real estate sector going to remain stable as developers modified to reduced oil prices, less government spending and a significantly slower rate of economic development than in recent years by decreasing levels of new supply.
Just 8,000 residential units were completed last year in two cities Dubai and Abu Dhabi and less than half the number completed in 2014, as developers responded to more repressed market conditions and tightened liquidity and this trend likely to continue into 2016.
Investor sentiment, lower oil prices and a slowdown in government spending are the main issues which have affected the resident sales market and another non-neglectable factor is regional geopolitical unrest, while US dollar dominance is making UAE real estate more expensive for overseas investors.
The data from the Land Department revealed falls of 33% and 28% in the volume and value of transactions. Rents and sales prices dropped 2% and 11% during the period.
The rents have managed better than sale prices in all sectors of the residential market last year, increasing rental yields and the future attraction of the sector.
With average rentals reducing in the Dubai market, 2015 has seen an expanding of the gap between residential rents in Abu Dhabi and Dubai
Real estate value performance was flat over the year with the exception of the hospitality sector witnessing improved performance and little increases in prime residential and office rents. Average commercial rents have remained largely unchanged in both Dubai and Abu Dhabi.
Get connected to us on Social Media:
Google Plus: https://plus.google.com/104857410107185523259