Q2 Report Shows Increase Activity In Dubai Residential MarketTuesday, July 17, 2012
According to the latest Q2 report, a slight increase in the overall residential market activity in Dubai has been noticed due to increase in the supply in the second quarter of 2012. At the same time, limited new office supply has also entered in the market up till second quarter of 2012.
A consultancy firm confirms that almost 3,000 residential units were added to the residential stock inventory of Dubai in the second quarter. With this addition, the current stock level rises up to approximately 344,000 units with villas doing better than the apartments sector. The same report reveals that 41,000 units will be added to the inventory by 2014.
The economy growth has brought prosperity in the region as it has generated more jobs for people. At the same time banks have also become generous while issuing loans on low interest. This has geared up activity in Dubai real estate market. Prime residential buildings are in high demand and therefore, they are enjoying a hike in price.
Dubai office market, on the other hand, has also recorded an estimated 1.4 million square metres of new office space being added between 2012 and 2013 to the existing stock of 6.1 million square metres. Limited new office supply has been entering in the market since the beginning of 2012.
There is not too much office space supply in the market. Therefore, unlike other sectors, there is a shortage in office markets. The average sale price in the office market remained stable during the second quarter because no significant transactions were recorded. However, the prices are expected to fall in 2013.
Rental amounts of offices in prime locations such as DIFC and Emaar Square remained flat but at secondary markets, the prices have fallen in the second quarter.