Dubai Real Estate updates cover on the high-end apartment sales that drop at 10%. It is said that the affordability of real estate property has become the major drive to stabilize the market.
Gulf News reports that Asteco discloses its mid-year report of UAE Market earlier than the Cityscape Global. The report highlights the "stability in Dubai with a continued focus towards the affordable segment, in contrast to the high end market which experienced declines of up to 10%."
IMPZ, Discovery Gardens and Dubai Silicon Oasis's affordable units have shown increased in its sales over the summer. The figures show a 3%, 6%, and 2% increase respectively. However, Dubai Marina and Jumeirah Beach Residences show a decline of almost 10%, while Palm Jumeirah has recorded year-on-year decline of 13%.
Asteco Managing Director John Stevens said that the recently launched properties, which have a reasonable price or even an affordable payment scheme including a healthy prospective ROI, are attracting the interest of investors. "The second half of the year will see around 7,000 units come online, and while average rental rates have been relatively stable over the last few months, albeit with significant differences between areas, we expect the new stock to exert further downwards pressure in the next few months; and through to 2016 with 13,000 more apartments due for completion," Stevens added.
Arabian Business states affordability is going to be the "major driver in Dubai's real estate market" since the prices of high-end properties have continually dropped off. Asteco is directing towards the affordable segment of its real estate properties as it has experienced increase in its sales. In comparison to the luxury market, report says a 10% decline has been noted.
Asteco also mentioned that residential market in Abu Dhabi has seen a slowdown in transactions. However, in Khalifa City, "bar increased demand particularly for villas but rental and sales rates remained stable."