Asteco report shows further declines in rental rates and selling prices in Dubai

<! –

->

Dubai-UAE
Asteco, one of the leading real estate services companies in the United Arab Emirates, recorded a steady decline in rents and sales of villas and apartments in its report on Dubai properties for the second quarter of 2018. The Quarterly Highlights report of current and planned deliveries of major projects across the emirate.
Sales of villas and apartments fell 4% in the quarter, while the annual decline was 11%. The largest decline in apartment sales at the Dubai International Financial Center, Discovery Gardens and Dubai Sports City has been 6% since the first quarter of 2018. At the same time, the largest quarterly decline was recorded for Jumeirah Park (8%) and Arabian Ranches (5%) and springs (5%).
The market remained stable "despite investor and end-user expectations of a decline in activity, mainly due to the launch of new projects, often characterized by increasingly attractive features , competitive prices and long repayment plans.
The second quarter of 2018 saw the launch of several new residential projects, including "Amaranta 3 The first phase of the Al Ghaf hills at Dubailand, and the Zawaya multi-use development in zones 1 and 2 of Motor City and Burghava Heights of the circular village of Jumeirah.
John Stevens, CEO of Asteco, said, "New projects typically focus on the affordable category, resulting in a decrease. Selling prices are up 5% quarter-on-quarter relative to those medium and high-end properties whose selling prices fell by 3%. "
Despite the low number of deliveries expected, the size of the supply remains relatively" relatively "In the prices of apartments and houses rental villas by 3% and 2%, while the annual decline was more pronounced at 12% and 10%.
"Vacancy levels in many projects have increased, properties managed by management and maintenance teams have been successful in maintaining occupancy rates, and homeowners have maintained their occupancy rates by offering additional discounts and incentives Compared to 2017, the highest rental rates for apartments in Jumeirah Village (16%), Jumeirah Beach Residence 15%, Jumeirah Lake Towers, Deira and Discovery Gardens by [14,592,012] For villa rental rates, the annual decline in Jumeirah Park and Jumeirah Village was 15%, followed by 11% Arab ranches.
Approximately 3,400 dwellings were delivered in the second quarter of 2018 This is largely equivalent to the first quarter, when the majority of new projects are located along the roads of Sheikh Maha Street (E311) and Emirates Road (E611).
A total of 25,000 additional units It should be delivered by the end of 2018. Asteco has adjusted its forecast for the delivery of new 2018 projects to residential units and offices at 17% and 20% based on a combination of factors. units delivered in the first half and the forecast of delays in the completion of projects.
The number of completed offices was significantly higher than in the first quarter of 2018, following the addition of more than 760 thousand square feet to the HSBC Dubai head office with an area of ​​320,000 square feet and the third Wan Central project building in the region Regarding the overall outlook for real estate development in Dubai, Stevens said: "Preventive government initiatives and continued infrastructure development should stimulate market movements and investment development in the United States. WATER. Recent positive decisions, such as the freeze of tuition fees for the 2018-2019 school year, as well as a 10-year residency visa for investors, specialists and foreign property for businesses outside free zones. The UAE has always been a haven for real estate investment, and the new laws will attract a large number of foreign investors looking for a country of deep-seated values ​​that will welcome them. "