Dubai Real Estate Shows A Positive Recovery

With a clear yearly trend of relatively stable sales coast, the general sentiment has been cautiously towards a recovery commencing in the second half on this 12 month, according to consulting firm Valustrat.

Evidence form the market place also indicates that both lender and end-users are now doing deals on well-located and correctly cost land, the authority said in its second quarter 2016 real estate review.

For the second quarter of 2016, (DLD) Dubai Land Development transaction volumes for the ValuStrat price index (VPI) coverage regions witnessed quarterly increases of 14% for residence and 7% for villas, said Haier Tuaima, VluStrat Research Manager.

The VPI is anabsolute report driven representation of the monthly cost changeexperienced by typical freehold land.

The second quarter index displayed an overall 1.1% yearly decline in values. However, the monthly growth rate of residential values has been broadly secure since July 2015.

April and May residential VPI registered 98.0 index points while June dipped slightly by 0.1% to 97.9 index. Statistical analysis has shown further indications of an early recovery on some regions, signalling possible signs of a bottoming out-in land values across the VPI coverage sites during the course of the 12 month.

Residential investment yields saw some gain as the median asking tariff this quarter were 1.3% higher than the fourth quarter 2015 and 2.8%higher than first quarter 2016.

For 2016, the latest estimated total supply of residential units and villas to be completed amounts to 16.326 units. Compared to data submitted in the previous report, just over half of the scheduled units will be delivered this year. Nine-off plan residential projects were launched in the second span to add more than 2,500 units to the residential pipeline by 2020.

Office transaction sales cost fell by 10.6% since last year and only 1.1% since the last quarter. Median asking tariff for office space fell 4.6% yearly and 4.8% since the previous quarter. The median asking tariff for office space was Dh1.130 per square meters (Dh105 per square feet).