Monthly Archives: August 2014

DAMAC Properties launches New units at ‘AKOYA Oxygen’

Akoya oxygen DAMAC

One of Dubai’s leading luxury developers, DAMAC Properties, has brought forward the second release of units at its latest master development, AKOYA Oxygen, following ‘unprecedented’ customer demand.

Sales on the initial launch of the project sold out in just one night. The second release of units will be made available at private events across the UAE on Wednesday, 3rd September 2014 with four-bedroom villas starting at AED 2.25 million.

Villas-DAMAC-AKOYA-OXYGENVillas-DAMAC-AKOYA-OXYGEN-4-bedroom

 

 

 

 

 

Locations include DAMAC Maison – Dubai Mall Street, The Oberoi and the JW Marriott Marquis in the Burj Area of Dubai in addition to the Atlantis Hotel on the Palm Jumeirah, and the Rotana Al Ghurair Rayhaan in Deira.

AKOYA Oxygen is a 55 million square foot community in Dubailand offering the most lush, green environment ever developed in the region. The project includes numerous luxury living experiences set around a Championship-standard 18-hole golf course, with more than 4,000 trees, organic gardens and private parks.

The project also includes a five-star international hotel, a luxury desert-style wellness centre featuring holistic therapies, yoga, herbal treatments, and relaxation zones. The fully-integrated resort will also include globally-recognised retail brands, leisure & entertainment offerings, and organic market places all set within beautifully manicured & peaceful landscaping.

 

Dhs 37.5 billion invested in Dubai Real Estate Market in 2014

Dubai Land Department (DLD) has reported that total of 17,289 real estate transactions worth Dhs 37.5bn were conducted in the first half of this year. The government organisation accompanied their announcement with a breakdown of nationalities making property investments in the first six months of 2014, which revealed that Jordanians topped the list of Arab investors, with Indian nationals ranked first for foreigner investment.

“To say that we are delighted with the real investment transaction figures from January 1st to July 1st would be an understatement,” said Sultan Butti Bin Mejren, Director General of DLD.

“We are extremely proud of these positive results, as they reflect a building momentum in Dubai’s real estate market which has now reasserted itself on both the regional and global stage. We are certain that the future will see even more demand, especially in light of the government’s declaration of forthcoming major projects,” he added.

DLD’s report, issued by its Research and Real Estate Studies Department, revealed that Arab Investors completed a total of 3,058 transactions worth Dhs6,905bn in the first half of this year. Jordanians made 640 transactions to the value of Dhs1,347bn, with Lebanese nationals second on the list of Arab investors through their creation of 459 real estate deals worth a total of Dhs1.235bn. Egyptians came in at third place after being involved in transactions worth Dhs1,009bn. Arab investors from Iraq, Yemen, Libya, Sudan, Palestine and Algeria also made significant real estate transactions in the first six months of 2014, with investments below the level of Dhs1bn for each of these nationalities.

DLD’s list included the amount of real estate transactions conducted by foreign nationals, with investors from India, Pakistan, Britain, Canada, Russia, China, USA, France and Afghanistan involved in 14,231 property deals worth a total of Dhs30.533bn for the first half of 2014. Nationals from India were ranked first for foreign investment, making a total of 4,417 transactions worth Dhs10,523bn. British investors were in second place with 2,258 transactions worth Dhs5,811bn, followed by Pakistani investors with 3,064 transactions worth Dhs 4.5bn.

Iranian and Canadian investors came in at fourth and fifth place, with transactions worth Dhs2.7bn and Dhs1.9bn respectively. Citizens from Russia, United States and China occupied sixth, seventh and eighth places, creating more than Dhs1bn worth of property invested in each category of national.

Dubai needs 30,000 new homes by 2018 to maintain rent stability

Dubai needs to build an additional 30,000 residential units through to 2018 to maintain rent stability in the emirate, a new report claimed on Monday

Phidar Advisory said in a research note that residential sales prices and rents were still on the rise in Dubai during the second quarter of this year, but the rate of growth slowed dramatically for both sale prices and lease rates.

Based on transaction data from the first six weeks of Q3, the report also said that nominal prices for single family homes declined four percent and apartments declined 0.6 percent.

“This has led to yield compression but the report also states that as many as 30,000 additional units are needed through 2018 to maintain rent stability,” the report said, adding that the figure is based on Phidar’s monitoring of announced, launched, stalled and ongoing projects.

Phidar said its House Price Index reflects real prices adjusted in representative projects across Dubai that have been completed since 2009.

Its report said residential development opportunities are still ample in Dubai, but added that the market would benefit “exponentially” from developer specialisation, particularly in the most under-supplied assets.

It said middle income housing could be a tangible and powerful catalyst, with Phidar research indicating that another 15,000 units could be reactivated from stalled projects.

Phidar said that in the short term, Dubai’s property sector is likely to display volatility which could lead to a price correction, following a two-year period of “exuberant investor sentiment”.

The report also suggests that long term capital appreciation due to strong demographics is a foreseeable scenario but the current supply trends and affordability constraints will pose challenges to sustained long term growth.

Last month, Knight Frank said in a report that annual growth in prime property prices in Dubai almost halved in the second quarter of 2014 compared to the previous quarter.

Prime prices rose by 6.3 percent in the year to June, down from 11.7 percent in the last quarter, its Prime Global Cities Index for Q2 showed.

Dubai was ranked the 13th best performing real estate market tracked by the property consultancy, a sharp fall from previous quarters when the emirate has featured in the top two positions.

Knight Frank said moves to introduce a mortgage cap and double transfer fees at the end of 2013 has “influenced buyer activity more than forecast”.

Phidar Advisory is a recently established advisory firm specialising in real estate in the UAE and led by Jesse Downs, a former senior executive at Jones Lang LaSalle.