- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 04:26 05:44 12:20 15:47 18:50 20:08
An aerial view of Meydan Sobha - District One located at a short distance of 2.9 kilometers from Burj Khalifa - Med-Res. (Supplied)
Developers with proven track record have been at the forefront of launching new projects in Dubai over the past two years, with the majority of launches achieving high absorption of units, according to global real estate consultancy CBRE.
“As has been the trend over the last 24 months, most new projects have been launched by developers with a proven track record in the local market, highlighting a slight deviation from the previous cycle where there was greater involvement from smaller scale private developers,” the consultancy said in its third quarter 2013 report.
This has been the primarily due to the enforcement of Real Estate Regulatory Agency’s (Rera) regulations requiring developers to have 100 per cent ownership of their land and an unconditional performance guarantee for 20 per cent of the construction costs, if they wish to sell off plan before 20 per cent of the construction is completed.
The new measures have been put in place to help safeguard interests of investors by ensuring appropriate financial standing of developers.
CBRE believes the residential market remains firmly set on an upward track, with sustained growth being achieved across both rentals and sales segments.
Sales activity remains healthy, with a total of 5,175 residential property transactions during the quarter with a total value of Dh11.15 billion.
As with the transactional market, the leasing market continues to show positive momentum with rising activity across all Dubai locations.
The average quarterly rise in residential rents (covering both villas and apartments) has been 3.5 per cent, similar to the second quarter.
The highest increase has been noted in the apartment sector with a 4.5 per cent growth quarter-on-quarter and 28 per cent year-on-year.
Smaller sized units covering studios and one bedroom have seen the biggest jump during the quarter as demand for more affordable properties continues to influence relocation decisions, CBRE said.
The Expo 2020 award in November is being keenly awaited, with a Dubai win constituting a major catalyst for future growth across virtually all asset classes.
“A successful bid would of course be a great accolade for the emirate, opening a new window to the world to promote Dubai’s status as a global city, and one with world-class infrastructure.
“Importantly, it would also help to drive demand in the emirate's property sector, helping to reach new and untapped markets and ultimately increasing Dubai’s global reach,” the report said.
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