September 24th, 2016 by Own A Space
Luxury villas in emirates hills costing more than Dh 10 million have registered a soaring hike in its sale, of about 45%. According to a consultancy, emirates hills have reported the promising 40% increase which is the highest transaction amount amongst all top villas during past four years. Identical trends have been followed when we talk about sales price of villas and their rents. This has kept the yields stable between 3.5-3.7% over the past 4 years.
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Company CEO David Godchaux said that with limited stock and without new supply of this scale of quality in such close surrounding, these properties have central location and close adjacency to other top residential and economic clusters which makes it most desired after ultra prime localities in Dubai for international investors and buyers.
To gain advantage on these factors, it’s expected that this prime submarket will hold value in mid to long term along with carrying an elite address status.
Despite of the selling activity in Dubai Marina fallen over by 25% and as it has been keep falling every passing year, the community has created value for the buyers as the prices ease.
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Dubai Marina observed high transaction activity in apartments over last few years. As expected, occupancy levels of headlines are almost 90% within top performing towers and top rental market has paused relatively due to continued demand from migrants.
The CEO adds that the prime sale prices have hit a low of about 8% each year although it has created opportunities for investors through steady yields averaging between 5-6%.
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The ease in sales market is pushing the prospective investors to take long term approach by holding properties and leasing out core assets instead of flipping in Downtown, as the rental market continues being strong.
The transaction levels have dripped down by 19%. The district Housing Burj Khalifa, the tallest tower in the world and Dubai Opera maintains high headline occupancies right now spanning over 85% across most of the prime towers.
Rental market has displayed a rise of 2%, an year on year raise bucking apprehensions of weakening rental demand due to a unifying financial jobs market.
Top residential property prices in Dubai are almost 60% beneath of New York’s, 75% below London and 85% below top ones of Hong Kong.
“Supported by existing ease of sales market, potential capital appreciation and higher long term yields, Dubai’s top residential real estate holds very good value as per the global levels”.
With low holding charges and lower transaction costs, Dubai stacks up complying against other competing global cities as an investment destination for individuals and investors globally and with ultra high net worth.
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