Prime locations throughout Dubai, including Downtown Dubai, Palm Jumeirah and Dubai Marina are driving the rental markets with growth around five percent in Q3 alone, says CB Richard Ellis.
The latest report from the global real estate firm shows that demand in key areas remains strong, but that there is still good value in other locations throughout the Emirate.
This is a further proof point that Dubai is seeing a two-tier property market with areas which have completed infrastructure and facilities seeing strong growth and areas still under development experiencing high vacancy rates.
The report stated that rents were now “fixed on an upward path in the majority of sub-markets”.
Data for the year to date also continues to show a sharp incline in activity with the value of all residential transactions at AED 10.3 billion, compared to just AED 6.9 billion for the same period in 2011.
You only need to take a drive around the city to see cranes moving again, traffic delays and a generally more confident air. Recruitment is currently strong, we are entering the peak tourism period and new off-plan developments are reporting strong uptake in early purchases.
Indeed, the growth in the market has generated stories of the return of the speculator. While most developers are trying to play down the return to a boom and bust real estate economy and focus more on ‘steady and consistent growth’, there are certainly international investors coming back into the market in a big way, as they see the turning point in the market.
The increased liquidity in the market in general is going to allow developers and government contractors to move quickly in areas still under development and this is where we see the greatest opportunity to the investor.
In areas such as Jumeirah Lakes Towers and Arabian Ranches where roads and shops are currently under construction, prices remain highly competitive. An investment now will create the greatest opportunity for capital growth as projects complete and an increase in population fills the vacant apartments.
It is good to be talking positively about the Dubai property market again and while we have to keep a check on over-talking the market into an unrealistic position, there are clearly signs of revival.
While traditional powerhouses in Europe, America, and even China to some extent, struggles to break free from global austerity measures brought in to deal with the downturn, Dubai is much more nimble and able to recover much quicker. International investors seem to recognize that and are moving fast to place their money here.
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