Dubai prime homes see mod­est price growth in 2Q

The Pak Banker - - BUSINESS -

De­spite the global tur­moil caused by Brexit and other geopo­lit­i­cal events, Dubai's prime res­i­den­tial mar­ket re­mained sta­ble in the sec­ond quar­ter of the year, re­flected by a mod­est 0.03 per cent growth. Dubai Ma­rina re­mained the top-per­form­ing prime com­mu­nity in Q2. Prime res­i­den­tial prop­er­ties are those that lie at the high-end of the Dubai res­i­den­tial mar­ket. Lux­habi­tat recog­nises 10 such areas: Ara­bian Ranches, Down­town Dubai, DIFC, Dubai Ma­rina, Emi­rates Hills, Jumeirah, Jumeirah Beach Res­i­dence, Jumeirah Is­lands, Palm Jumeirah, The Lakes, Springs and Mead­ows, and Vic­tory Heights.

Ja­son Hayes, head of new de­vel­op­ments at Lux­habi­tat, said: "This fig­ure may not be seen as stag­ger­ing growth but it demon­strates sta­bil­ity in Dubai's prime mar­ket. Q2 has seen some prime new de­vel­op­ments re­leased to the mar­ket and in­vestor ap­petite has proven to be ro­bust. The Dubai Hills Es­tate has gone from strength to strength in Q2 with projects such as Fair­ways Vis­tas sell­ing out. These launches demon­strate the mar­ket de­mand for qual­ity lux­ury off-plan de­vel­op­ments. Down­town projects con­tinue to stall. I en­vis­age an up­lift in trans­ac­tional ac­tiv­ity in Q3 and Q4." Dubai Ma­rina emerged as the top-per­form­ing area, with over 356 trans­ac­tions. Price per square feet in the area has de­clined from the last quar­ter by seven per cent. Prices for the Dubai Ma­rina peaked in 2014 and has been steadily de­clin­ing since then. Daniel Garo­foli, lux­ury sales spe­cial­ist of Lux­habi­tat, said: "Apart­ment prices per square feet for prop­er­ties in qual­ity tow­ers with the best lay­outs and views are sta­ble. The fall of the price per square feet of the over­all mar­ket is cause by in­vest­ment units, 1beds with low floors and court­yard or no good view. These are sell­ing for any price at the mo­ment. How­ever, buy­ing in a supreme lo­ca­tion al­ways gets you the money back and the re­turn on in­vest­ment per year." The sec­ond-high­est rank­ing area in terms of num­ber of trans­ac­tions is Down­town Dubai with 169 trans­ac­tions. Prices are trad­ing below 2013 lev­els at Dh2,142 per square feet.

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