Dubai awaits new housing inventory this year
The real estate market in Dubai is anticipating the impact of a new housing inventory to get underway during the rest of the year.
The market is preparing to welcome 20,000 apartments and 3500 villas, which will be delivered by this year, says the research report by National Bank of Abu Dhabi.
In June 2013, Dubai had approximately 400,000 apartments and 60,000 villas, a research report on Dubai property sector revealed.
According to Samir Munshi, Managing Director of Orion Holdings, a Dubai-based real estate firm, there was a huge demand for housing, given, the increased consumer confidence, and new businesses opening up daily, coupled with the economic boom, which will come with announcement that the nation is eagerly waiting to be made in the coming months, the Expo 2020.
The property boom is here to stay for next two to three years, which will keep the real estate prices high. Real estate prices would hike 10 to 15 percent by the year-end from their current price levels depending on the locations, he said.
According to a NBAD report, the demand for high quality units is still high, but, majority of people are searching for affordable units. The high-end units in Palm and Downtown are still 60 to 70 percent lower than their peak values in 2008, said the NABAD report.
Villas seemed to be the preferred choice, as prices in locations such as Dubailand, and Arabian Ranches are now 30 percent lower than the record values.
Rentals continue to grow in all areas of Dubai year-on-year, including Downtown, Dubai Marina and Palm Jumeirah. The rental cap remained effective and protected the current lease agreements, the report said.
With increased housing cost, majority of low-income residents are to be forced to shift to affordable regions, he said.
Posted on 20/9/2013
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