dubai real estate market

JLL released its first quarter (Q1 2016) Dubai Real Estate Market Overview report, including the latest trends in the office, residential, retail and hotel sectors. According to the JLL, ,in Q1 2016 most segments continued to soften across the Dubai market, but long term outlook still remained positive due to future growth drivers.

Residential sales prices declined by 10% and 11% Y-o-Y respectively for apartments and villas.The first quarter in office market saw the handover of B2B Office Tower and the New Dafza building, located in Business Bay and DAFZA, respectively. The two towers added 38,400 sq m of office GLA, taking the total value to 8,465,300 sq m as of Q1 2016.

Average rents in retail market during the first three months of 2016 remained flat and occupancy rates at 92% continued to show strong momentum across the retail segment.

Commenting on the report, Craig Plumb, Head of Research at JLL MENA, said:

“Various factors are bringing the market towards the bottom of its cycle. The strong dollar is impacting the USD pegged GCC currencies which is making Dubai real estate more expensive for buyers from non-USD pegged markets. At the same time, the continued period of low oil prices is tightening regional liquidity which is also affecting the real estate market.

We are witnessing a continuing decline in average sales and rentals in the Dubai residential sector, with similar negative momentum in the hospitality sector, where average room rates have fallen over the quarter, despite the continuing high occupancies.

Retail rents remained largely unchanged over the quarter and some centres could experience downward pressure on rents later in the year due to continued levels of new supply entering the market.

The office market has been stuck at the bottom of the cycle for a number of years and has not seen the upturn which other sectors have witnessed. Nevertheless, we are seeing some select activity and momentum for Grade A office buildings which continue to generate strong demand.

Whilst the short to medium term outlook for the Dubai real estate market is less encouraging, we remain positive on the long term outlook due to future growth and demand drivers like the Expo 2020 and other mega infrastructure developments.”

 

dubai2222

House prices in Dubai decrease in Q1 2016, says new survey

 

Source: JLL Mena

Leave a comment

Your email address will not be published.