Dubai real estate hotspots expand with ongoing robust growth, says International Property Show 2015

Dubai real estate hotspots expand with ongoing robust growth, says International Property Show 2015

Newer areas to come under spotlight at the three-day show from March 30 to April 1, 2015

Dubai, UAE, 15 October 2014: Organisers of the International Property Show (IPS) 2015 say that property sector hotspotsin Dubai are expanding, as interest is extending to new areas that were not considered “hot” a few years ago.

While areas like Downtown Dubai, Business Bay, The Palm Jumeirah and Dubai Marinahave been the dominant players ofDubai real-estate sector, many unheralded areas are coming on the radarand they are expected to gain further prominenceat the three-day exhibition.

Dawood Al Shezawi, CEO, Strategic Marketing & Exhibitions, organizers of the exhibition which will be held from 30 March – 1 April 2015, expects the sector to sustain current growth because demand stilloutstrips supply, opening up newer investment options for investors.

IPS 2015is considered a one-of-kind specialised fair as it mainly target end-users who wish to do buy units on the spot. Al Shezawi said the show has been positioned aspowerfulretail platform targeting all types of potential buyers who can shop for properties with same ease and comfort as shopping for goods in a retail store.

Experts say that Dubai continues to hop a prominent position globallyas a top performer when it comes toReturn on Investment and rent yields,backed bystronglegislation.

Al Shezawi added: “Hot real-estate zones are mainly measured by the demand they generate from all sorts of buyers. IPS will host all major playersfrom the hot zones, in addition to many other ones who have agreed to customize their offering for our visitors at the end of first quarter of 2015.”

IPS coincides with the Annual Investment Meeting (AIM) and both events are guaranteed to attract hordes of trade visitors. This edition of IPS will witness participation of up to 300 exhibitors.

“The maturity and stability of the Dubai real-estate sector is certain to attract more buyers and investors. We anticipate numerous deals and transaction on the exhibition floor itself. IPS will alsoserve asa venue for cementing partnerships and launch of major new projects.”

“We would like to encourage even small budget buyers to visit the IPS at the Dubai International Convention and Exhibition Centre and benefit from the never-before investment options,some withattractive installment plans.”

Speaking about international exhibitors at the show, Al Shezawi said that driven by a maturing market, transparent legislations and a growing appetite for property investment, international presence will be the highest at this edition of IPS 2015.

“We invite investors, developers, financiers, architects and consultants in property investment, development and construction to visit IPS and keep abreast of the latest market trends as well as meet with decision makers from the real-estate industry,” concluded Al Shezawi

IPS is organised by Strategic Marketing & Exhibitions which is perceived as one of the leading exhibitions and conference organizers in the UAE. The company has grown within and contributed to the exhibition industry and have gained the reputation of being one of the leading experts in all aspects related to the exhibition industry.

Mounting demand pushes Dubai real estate prices up further

Mounting demand pushes Dubai real estate prices up further

Apartment and villa sales prices up 12% & 5%, rents climb by 3% & 4% respectively; residential rates climb in all areas says Asteco Q1 2013 Dubai real estate report

All residential developments in Dubai, especially those with quality buildings or those in prime areas, have continued where they ended 2012 with a strong Q1 2013 performance.

Apartment sales prices grew on average by 12% in the three months to the end of March 2013 with year-on-year growth standing at 27%. In comparison, although average villa sales prices only climbed 5% in Q1 2013, growth over the past 12 months averaged 24%.
The performance of rental rates was also impressive, average apartment and villa rents grew by 3 and 4% compared to Q4 2012, but still managed to climb 19 and 21% respectively over the past 12 months.

“The overall outlook is positive with demand and rates expected to continue to grow. However, this will also mean that some tenants and buyers will be priced out of certain buildings or communities,” said John Stevens, Managing Director, Asteco Property Management.

“Prices are not only being driven by tenants relocating, Dubai is also attracting new tenants and those expatriates here are still tending to take a longer-term view of living in Dubai,” added Stevens.

The areas that came out on top for villa sales in Q1 2013 were the Meadows which jumped 10% reaching AED11,850 per square metre; Jumeirah Islands which rose 9% achieving AED13,450 per square metre and the Jumeirah Village which also grew 9% to AED6,450 per square metre. Year-on-year villa sales in the Springs grew by 29% to AED 9,700 per square metre and the Palm Jumeirah remains the most expensive at AED20,450 per square metre.

In terms of apartment sales the top performer in Q1 2013 was Discovery Gardens which increased by 33% to AED 6,450 per square metre. The only other double-digit growth was recorded in Dubai Marina and Jumeirah Beach Residence, where rates grew 14 and 15% respectively to AED 12,900 and AED 12,400. Over the past 12 months once again Discovery Gardens was the top achiever climbing an impressive 50% and again the Palm Jumeirah is the most expensive area with property commanding AED16,150 per square metre compared with apartments in DIFC and Downtown Dubai, which now change hands for AED 15,600 and 15,000 per square metre respectively. The Palm Jumeirah remains the most expensive area, with a three-bedroom villa now costing AED 325,000 per annum.
“In terms of supply and demand, Dubai is still benefiting from the Arab Spring and the Euro crisis, which was brought into sharper focus recently with the Cypriot banking crisis. Good quality stock is gradually being reduced while the length of time that advertised units stay on the market now is also shortening,” added Stevens.

Apartment rental rates grew most during Q1 2013 in International City where a two-bedroom unit increased by 8% to AED 40,000, while most other areas recorded up to 3% growth. However on an annual basis, a two-bedroom unit in Discovery Gardens now leases for AED 70,000 a 27% increase. Downtown Dubai and Dubai Marina followed, notching-up increases of 21 and 22% respectively. A two-bedroom apartment in these developments rents on average for between AED 100,000 and AED 125,000.

Although the commercial market saw little movement during 2012, it did show some signs of life in Q1 2013. Rental rates in Dubai Investments Park rose 13% to AED 485 per square metre, while JLT and Tecom rose 20 and 25% respectively to command AED 654 to AED 800 per square metre compared to the same period last year. DIFC remains the premium destination for office rental with AED 2,400 per square foot. Q1 2013 office sales prices grew most notably in JLT (9%) and Business Bay (7%).
For more details, please visit www.asteco.com

A copy of the full Asteco Dubai Q1 2013 report can be downloaded from –



http://www.asteco.com/uae/dubai/research-library-listing/Dubai-Q1-Report-2013



Asteco, a major regional and international real estate services firm and the largest property services company in the United Arab Emirates, was founded in Dubai in 1985. Asteco offers independent market analysis, design development consultancy and valuation services, sales and leasing services, as well as asset and property management services.

Villa sales prices up 23% - apartment sales prices up 14% in 2012, says latest Asteco report on Dubai real estate

Villa sales prices up 23% - apartment sales prices up 14% in 2012, says latest Asteco report on Dubai real estate

Apartment and villa rents up 17% in 2012 – report forecasts strong leasing and sales demand to continue in H1 2013

Quality residential developments in Dubai ended 2012 with a strong Q4 performance to put the average annual increases at their highest since 2008. Villa sales prices were up on average 23% year-on-year and apartments made average gains of 14% during the same period. The leasing market was no less impressive, with an average increase across all residential types of 17%.
“The latter half of 2012 witnessed better than anticipated performance in terms of pricing, transaction activity and occupancy as well as new real estate launches,” said John Stevens, Managing Director, Asteco Property Management.

Sales prices for apartments and villas rose by 9% in Q4 2012 alone, fuelled by increased confidence and improved financing. The buyer profile was dominated by self-use and investments for rental income, with expatriates taking a longer-term view of living in Dubai. Interestingly cash buyers outnumbered mortgaged sales.
The areas that came out on top for villa sales year-on-year were the Springs which jumped 38% reaching AED9,700 per square metre; Jumeirah Islands which rose 28% achieving AED12,400 per square metre and the Arabian Ranches which grew 27% to AED10,250 per square metre.

In terms of apartment sales the Palm Jumeirah increased by 27% to AED15,100 per square metre; The Greens followed with growth of 23% at AED10,250 per square metre and Downtown Dubai which recorded an 18% increase, rising to AED14,000 per square metre.
“The recent clarification by the UAE Central Bank that it will not impose any immediate loan-to-value (LTV) caps on UAE banks, suggests that existing LTV ratios are likely to remain unchanged, in which case Asteco forecasts that the sales market will enjoy continued growth in 2013,” commented Stevens.

The residential leasing market also witnessed robust growth across all developments researched with the exception of International City. Increased enquiries pushed demand and prices up by 7% for apartments and 5% for villas in Q4 2012.
In terms of supply and demand, Dubai is still benefiting from the Euro crisis and the Arab Spring as people seek stability and better economic conditions. Mid to high budget enquiries have increased and stock in popular developments is drying up. Indicative of the strength of the market, the take-up time of advertised units has declined steadily over the year.
The highest growth rates year-on-year for villas were recorded in the Springs, where a three-bedroom unit now costs AED140,000 per annum, a 27% increase; Villas in Arabian Ranches rose 25% to AED155,000 per annum for a three-bedroom house. The most expensive area remains The Palm Jumeirah – a three-bedroom villa there costs AED325,000 per annum.

Apartment rental rates grew most in Discovery Gardens, with a 23% increase to AED45,000 annually for a one-bedroom unit; Downtown Dubai followed on a par with 23% growth, a one-bedroom apartment now leases for AED80,000 per annum. International City lagged way behind the 17% average increase managing a 6% increase, putting a one-bedroom flat at AED24,000 per annum.
“If demand continues, we expect to see a shift in the market from being predominantly tenant-led to one controlled by landlords, especially in quality, well managed and established developments,” added Stevens.

In contrast to the residential market, the commercial market saw little movement during 2012. Overall leasing activity improved but actual transaction levels declined during H2 2012. Rates remained under pressure, with the exception of DIFC which recorded minimal growth. Sales prices were unchanged after a period of weak investor interest.
For more details, please visit www.asteco.com

The full Asteco Dubai H2 2012 report is available online at http://www.astecoreports.com/



Asteco, a major regional and international real estate services firm and the largest property services company in the United Arab Emirates, was founded in Dubai in 1985. Asteco offers independent market analysis, design development consultancy and valuation services, sales and leasing services, as well as asset and property management services.

Effective strata law key to future of Dubai real estate

Effective strata law key to future of Dubai real estate

New law will not necessarily bring down community service fees but will be cost-effective, regulated and transparent says property solutions expert

The effective introduction of the Strata Law is essential to regulate transparent community service charges which will improve investor confidence especially in the residential market, according to the head of property solutions at Dubai-based MAG Group.

Mazen Falhout, General Manager of MAGme Property Solutions, a division of MAG Group, said, “The Strata Law will not necessarily mean service charges will come down due to the technical, administrative and legal requirements of the Law but owners will be able to appoint their chosen management company, thus regulating both the cost and level of service required,” said Falhout.

The law transfers responsibility for property maintenance from developers to owners through the establishment of owners’ associations. The rules are legally binding and give owners a greater say in the management of communal areas, including choosing maintenance companies and helping to solve disputes between owners and developers. Owners also risk losing their property if service fees are not paid. However, there have been suggestions it will renew investor confidence in the Dubai housing market as it will provide transparency across the board.

There has been apprehension among some owners that the Strata Law, will create a potential rift between developers and owners as responsibility for community areas, whether it be in an apartment building or villa complex, are handed-over.

It is understood from the regulations that Owners’ Associations will take responsibility for all maintenance issues within six months of a new development project’s completion. For existing developments that process will start as soon as practically possible, within the existing time frame.

“It will be interesting to see which existing developments have made adequate provisions, by way of a sinking fund, for major maintenance work such as replacing chiller units or overhauling lifts, which may not normally be required for up to ten years,” said Falhout.

In addition the law states that the residents’ committee must consist of at least five members but some homeowners are reluctant to sign up because they are cautious about taking responsibility for any issues.

“Current owners want property values to appreciate, so it is vital that developments are maintained professionally, with best value for money and therefore it is within the owners own interests to get involved. As with any new administration it might be time-consuming initially but once policies and procedures are in place the process will become easier,” said Falhout.

However, Falhout has warned that owners must address the long-term impact of decisions and Owners’ Associations have to choose the best contractors and or service providers, which may not be the cheapest, but will represent best value.

“Because rents have become more competitive over the past 12 months, service charges can, on the surface seem inflated since only about 10% of fees are spent on visible services such as cleaning and security.

But when it comes to air conditioning or swimming pools, preventative maintenance is always the most cost-effective. As a guide, owners should expect to spend between 15% and 25% of rental income on service charges,” explained Falhout.

“The future of the property market in Dubai rests with the Strata Law being effectively implemented and managed. Homeowners will benefit in the long-run by taking ownership of their own community and ultimately their investment,” added Falhout.

Photo caption: Mazen Falhout, General Manager – MAGme Property Solutions.

About MAGme:
MAGme is a member of Moafaq Al Gaddah Group (MAG Group) and focuses on providing maximum benefits to investors and customers. Its range of services include; brokerage, snags and rectification, property management, owners association management and financial services.

About the MAG Group

The Dubai-based Moafaq Al Gaddah Group of Companies (the MAG Group) was established in 1978 and has grown into a multinational organisation with 18 offices in eight countries throughout Europe, the Middle East and Asia.

In the past five years the MAG Group Properties has invested in 12 properties at various stages of development across the residential, commercial and industrial sectors. The company focuses on projects that provide long-term benefits to investors and customers.