The residential market in Dubai is now experiencing a broad-based recovery.
Secondary and tertiary locations in Dubai, which until last year were witnessing a price and rent drop, are back in demand.
These areas, according to Jones Lang LaSalle (JLL), a property consultancy, are witnessing price and rent surge much faster than primary areas.
In its second quarter report on Dubai real estate market, JLL said: “The residential market is now experiencing a broad-based recovery, with prices and rental values picking up in the secondary and more affordable locations, while the primary areas are now witnessing slower growth.”
However, it adds that demand for projects in newly developed areas, has still not picked up and hence more time will be needed for growth.
Earlier this month, Asteco Property Management said rent rises in Dubai’s established communities is likely to force some tenants to move to more affordable communities.
“Residents will be priced out of established communities to more affordable, less developed areas due to the rent rises, with landlords controlling terms of rents and payment,” the property management company had said.
Citing the Reidin rent index, JLL says lease rates jumped by 12 per cent year-on-year (y-o-y) and three per cent quarter-on-quarter (q-o-q). The villa rent index rose by 13 per cent y-o-y, achieving its peak value in May 2013. The apartment rental index went up by 12 per cent y-o-y, but remains 24 per cent lower than in January 2009, the time when the index was started.
These areas, according to Jones Lang LaSalle (JLL), a property consultancy, are witnessing price and rent surge much faster than primary areas.
In its second quarter report on Dubai real estate market, JLL said: “The residential market is now experiencing a broad-based recovery, with prices and rental values picking up in the secondary and more affordable locations, while the primary areas are now witnessing slower growth.”
However, it adds that demand for projects in newly developed areas, has still not picked up and hence more time will be needed for growth.
Earlier this month, Asteco Property Management said rent rises in Dubai’s established communities is likely to force some tenants to move to more affordable communities.
“Residents will be priced out of established communities to more affordable, less developed areas due to the rent rises, with landlords controlling terms of rents and payment,” the property management company had said.
Citing the Reidin rent index, JLL says lease rates jumped by 12 per cent year-on-year (y-o-y) and three per cent quarter-on-quarter (q-o-q). The villa rent index rose by 13 per cent y-o-y, achieving its peak value in May 2013. The apartment rental index went up by 12 per cent y-o-y, but remains 24 per cent lower than in January 2009, the time when the index was started.
No comments:
Post a Comment