UK's Select Property says sales achieved over five months; indicative of Dubai real estate boom
A UK-based property investment company has announced that it has sold over 90 percent of a £71m ($109m) residential tower on Dubai Marina in five months.
The project, called West Avenue, is the first new residential tower to be launched on the Marina since the downturn of 2008 and indicates that the Dubai property market is starting to generate strong interest again, Select Property said in a statement.
West Avenue offers 270 one and two-bedroom apartments - starting at £122,500 - as well as four luxury penthouses with a price tag of £1.2m.
Select said only six percent of the sales have been to UK buyers, whereas pre-2008 this figure was nearer 60 percent, indicating that UK purchasers remain cautious.
The purchasers are typically people looking to live in the property themselves or rent it out to Dubai residents, Select added.
"This is very different to the average buyer pre 2008, the majority of who were looking to take advantage of rapid capital appreciation," the statement said.
"The recent movement in the emirate's property market can be attributed to a number of factors, one of which is the strengthening of supporting infrastructure - shops, transport systems, and restaurants - in key areas such as Dubai Marina, Business Bay and Downtown Dubai," it added.
Mark Stott, CEO of Select Property, said: "Before the crash in 2008 many investors were buying in Dubai simply on the strength of the 'Dubai brand'.
"Now there is an established infrastructure and very obvious property hotspots such as the Marina. It's really encouraging that so many of the buyers are end-users who are intending on living at the development as this will boost the burgeoning communities."
He added: "The market is much more stable than it was five years ago as the new regulations mean that only 'real' buyers can invest in the emirate and subsequently it is in a much more sustainable position."