A considerable dropdown is noticed in residential market of Dubai continued with the completion of 8000 new units in first quarter. Now the overall Residential Property Market in Dubai will continue to be oversupplied and prices are likely to fall even further for rest of 2011. As per newly published Report a further 20,000 units are expected to be completed by the end of this year, bringing the total residential stock to 338000.
Continued Drop In Dubai Residential Rents:
As per the data published by Real Estate Regulatory Agency (RERA), residential rents have dropped by 30% in some of most known areas during the period of last 12 months. Looking to this, authority has designed a Rental Index to help landlords and tenants to negotiate fair contracts. As per the report apartment rents of Property in Dubai Marina, Palm Jumeirah, Discovery Gardens, and Jumeirah Beach Residences had all seen significant declines over the last 12 months
Developers Rephrase Delivery Estimates:
Even to cope up with the situation and to keep up their own costs down some of the developers avoid finishing the project or keeping such finished properties away from the market, as by doing so they can escape from making utility payments and things like that. The developers of all such big and multi tower projects are seem to be extending their release dates. Some of them are even found to be releasing all such projects in a small portion. The worst part of this entire scenario is that still some significant portion of units is due to come on stream within a year. All are such where construction were already began before the crisis and all such projects seems to be continued by their developer as they feel it cheaper to go on, than to cancel and to repay money to investors.
Lending Will Plays A Major Role In Recovery:
Banks seems to be injecting liquidity into mortgage market with mortgage rates now available for as little as 5%, it is thus a high residential real estate transaction were noted in the month of January and February. It is believed that soon there will be stabilization in Residential market leading to lowering of the bank rate. Recently some of Real Estate Broker in Dubai were found refusing to lower existing prices while some buyers are paying increased rates for sought after residential development with limited homes available. All this can be considered a sign of Market Recovery…
Continued Drop In Dubai Residential Rents:
As per the data published by Real Estate Regulatory Agency (RERA), residential rents have dropped by 30% in some of most known areas during the period of last 12 months. Looking to this, authority has designed a Rental Index to help landlords and tenants to negotiate fair contracts. As per the report apartment rents of Property in Dubai Marina, Palm Jumeirah, Discovery Gardens, and Jumeirah Beach Residences had all seen significant declines over the last 12 months
Developers Rephrase Delivery Estimates:
Even to cope up with the situation and to keep up their own costs down some of the developers avoid finishing the project or keeping such finished properties away from the market, as by doing so they can escape from making utility payments and things like that. The developers of all such big and multi tower projects are seem to be extending their release dates. Some of them are even found to be releasing all such projects in a small portion. The worst part of this entire scenario is that still some significant portion of units is due to come on stream within a year. All are such where construction were already began before the crisis and all such projects seems to be continued by their developer as they feel it cheaper to go on, than to cancel and to repay money to investors.
Lending Will Plays A Major Role In Recovery:
Banks seems to be injecting liquidity into mortgage market with mortgage rates now available for as little as 5%, it is thus a high residential real estate transaction were noted in the month of January and February. It is believed that soon there will be stabilization in Residential market leading to lowering of the bank rate. Recently some of Real Estate Broker in Dubai were found refusing to lower existing prices while some buyers are paying increased rates for sought after residential development with limited homes available. All this can be considered a sign of Market Recovery…
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