Dubai’s property market continued to dampen in the first half of 2015 as the strong dollar made purchases costlier, a new analysis showed.
Bayut.com’s UAE Market Report for July said residential sales activity slowed in anticipation of additional units expected to enter the market over the next few months, stabilising prices.
Transactions over the past six months totalled $14.4 billion (AED53 billion), of which $8 billion came from foreign investors. But the report noted: “A strong dollar coupled with a general period of slow global growth dampened activity in the Dubai market, [and] the strong dollar has left a vast segment of international investors to delay their buying decisions.”
Dubai's most sought after areas, according to Bayut.com’s online database, were the as yet uncompleted Dubailand – mainly due to its “economical off-plan real estate options”, the report said - Dubai Marina, Jumeirah Lakes Towers, Downtown Dubai and Palm Jumeirah.
For renting properties in Dubai, the most popular localities in 2015 were Dubai Marina, Jumeirah Lakes Towers, Bur Dubai, Downtown Dubai and Dubailand.
The report highlights a shift among tenants towards the affordable category, reflecting the increased demand for this type of residential offer.
Bayut.com CEO Haider Ali Khan noted: “The properties for rent in Dubai Marina and Downtown Dubai do not fall in the affordable class, but they remained the most sought after due to the potential high returns, popularity and the lifestyle they offer a certain class of residents.”
The report also examined the Abu Dhabi real estate market. It found that, contrary to the Dubai market, Abu Dhabi enjoyed continued stability across all asset classes helped by limited supply.
Residential rental returns grew by three percent on average during the second quarter of 2015 compared to the first quarter and is expected to persist.
By July, around 2,397 units entered the market and another 4,200 are expected to be completed by year end, bringing the total residential stock to 244,000 units – “limited in face of an ever increasing workforce”, the report said.
The most popular localities for buying properties in July were Al Reem Island, Al Reef, Al Raha Beach, Al Ghadeer and Saadiyat Island. For renting, the top areas were Al Reem Island, Al Raha Beach, Khalifa City A, Al Reef and Saadiyat Island.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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