Property rents, sales prices continue to soften in Dubai
Real estate sales prices have continued to soften across most of Dubai along with widespread rental declines, according to a new report from consultants Core Savills.
The report found that sales prices declined most sharply in central areas such as Downtown Dubai and Dubai Marina, which saw declines of 7 percent due to a large number of new launches in these areas which shifted demand from ready built to off-plan stock.
Other areas, such as JLT and Emirates Living, have also seen new launches within the community, in addition to witnessing a demand shift towards adjoining – and newer – areas of Jumeirah Village as products with similar or lower price points become available.
“Multiple phase deliveries such as Mira, Mudon and Arabian Ranches have cast a significant downward pressure on The Springs and The Meadows’ sales market, with the potential buyer pool for the district preferring location over new stock,” the report notes.
Core Savills partner Edward Macura noted that the effect of new stock impacting secondary sales prices within a community or in the adjoining areas “is one of the strongest reasons causing a delay in sales price recovery.”
Additionally, the report found that the rental market in core apartment and villa districts is starting to see noticeable drops, such as in The Springs (9 percent) and The Meadows (5 percent) as tenants take advantage of rents – which are 15 to 20 percent lower than in 2015 – to renegotiate with landlords.
With most rental relocations happening between April and June, Core Savills expects an interim dip in the continued downward rental trend.
Source: Arabian Business
Britons Spend Big on Dubai Real Estate
Following the Brexit vote in 2016 and subsequent move for separation from European Union by the British Government, Britain has witnessed a massive outflow of capital towards outbound investment.
“Sustained investor appetite for European real estate led to a 22 percent increase in volumes during 2017, with all European regions registering growth,” Jones Lang LaSalle, an investment management company, said in the latest report.
Besides, the sound regulatory environment and solid foreign investor protection make Dubai an ideal market for investment for British investors and other foreign investors in Britain who want to invest their money in a more stable and higher-yield market and the UAE fits the bill.
A number of UAE property developers have tried to reach out to British home buyers and investors, by setting up offices and appointing brokers to promote Dubai’s real estate in the UK, especially in key cities of London, Manchester and other centres.
The International Real Estate and Investment Show, IREIS, is also set to bring the biggest international names in the real estate and investment industry to London with IREIS 2018 – UK Edition. To be held at one of the prime locations of London City “The Queen Elizabeth II Centre”, Westminister from 22nd-23rd June 2018, the show serves as a one-stop shop for UK investors who are seeking for the perfect investment opportunities in the UAE.
Organised by DOME Exhibitions, the IREIS 2018 – UK Edition will host a spectrum of property developers, investment and real estate brokerage companies which will showcase the latest offers across the seven emirates and around the world.
Source: live trading news
Work set to start on new $410m Dubai skyscraper
Designed as a mixed-use hotel and residential tower to address demand in the UAE’s residential, tourism and hospitality sectors, Dubawi will feature 500 hotel rooms and serviced apartments sharing amenities with the hotel, as well as over 500 apartment units and penthouses.
The development scheme will be managed by Shuaa’s specialised real estate asset management division, which currently manages assets in excess of AED3 billion, including real estate projects spread across both the UAE and Saudi markets.
The news comes as Shuaa Capital today reported that total revenues increased by 4 percent to AED33.2 million in the first quarter of 2018 but profits retreated to the AED11.7 million mark, less than half of the AED24.8 million seen a year earlier.
The company said this was primarily as a result of lower interest income from its lending arm, as a result of aggressive de-leveraging in bank debt in Shuaa’s lending subsidiary Gulf Finance Corporation.
Its real estate arm responsible for Badawi made AED8.9 million in revenues in Q1, an increase of 56 percent, with the division’s profits up 204 percent to reach AED4.1 million.
The unit said it is in the process of completing construction of a third project in Saudi Arabia in the city of Dammam while construction works on a new mixed-use residential compound in Riyadh known as Wadi Al Hada has also started.
Fawad Tariq-Khan, chief executive of Shuaa Capital, said: “The last 12 months have seen aggressive de-leveraging of our business with AED159 million bank term debt repaid from internally generated cash flows.
“Our core operations are welding well under the long-term strategy set last year and we are seeing positive results by expanding our portfolio of service offerings including our recent launch in Egypt for securities brokerage where Shuaa is now a top 15 broker.”
Source: Arabian Business
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