What is happening in Dubai's real estate market?
The Dubai real estate market continues to grow, thanks to an environment of ever-increasing government control and increasing transparency. All the main indicators indicate that 2010 will be a period of stabilization, and the real estate market will reach a new level of development.
Transaction levels are in a stable state as buyers turn their attention to the Dubai market again. However, it is worth noting that real estate buyers still play a leading role in negotiations with developers. The expected rise in the housing lending sector at the end of this year will help the market on its way to recovery. The average rental price for two-bedroom apartments in the Dubai Marina area has been set at 120,000 UAE dirhams, compared to similar apartments in Abu Dhabi, the rental price of which is approximately 150,000 UAE dirhams per year.
The cost of fixed capital in such apartments ranges from 800 to 1,200 UAE dirhams per square foot. Rental rates for the same or similar apartments in different areas of Dubai range from the lowest rates of 50,000 to the highest of 200,000 UAE dirhams per year. In connection with the quick commissioning of housing in the world's tallest skyscraper Burj Khalifa in the Downtown Dubai area, it will be interesting to watch the rental cost indicated in advertisements, which today ranges from 350,000 to 450,000 UAE dirhams per year. It will also be interesting to track the first transactions and at what price limit they will actually be set.
What is happening in the Abu Dhabi real estate market?
Historically, there has always been a shortage of housing in the capital city of Abu Dhabi. 2009 showed that this trend has changed, resulting in a decrease in rental rates, as the demand for rental housing, in the presence of additional supply, has become weaker. According to the information analyzed, this trend seems to be a stabilizing factor, due to a slight decrease in rental rates in the last quarter. And this, which is very important, returned the tenants' trust both to the capital of the emirate and to the country as a whole, which is one of the most important components in the process of restoring any real estate market.
The average cost of renting two-bedroom apartments in the capital of the UAE ranges from 150,000 a year, but we expect an additional 2,000 new housing units to appear on the Abu Dhabi market in the first half of 2010. Subsequent commissioning of residential properties is expected at the end of this year, keeping us from making any significant assessments over the next year.
One of the most important factors shaping demand is the population of the emirate, and this growth is expected to be caused by further investments in infrastructure projects that create the need for new jobs, goods and services. The expected population growth should help absorb all new housing offers in the capital's real estate market. PR
