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28 March 2024

Secondary sales to restart at JV, Jumeirah Park

Secondary sales to restart at JV, Jumeirah Park. (FILE)

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By Staff

Secondary sales in Nakheel’s Jumeirah Park, Jumeirah Village and Al Badrah will restart as they are nearing completion, according to Cluttons, a real estate advisory.

Nakheel recently announced that it would restart six of its projects in Dubai.

Buyers and tenants are both now in a strong position to negotiate on prices, said Cluttons’ UAE Market Report released on Sunday.

The findings of the report support the belief that the UAE is still affected by international fiscal uncertainty and market volatility.

However, growth prospects remain strong in the medium to long term, and the UAE remains a powerhouse as the logistical hub for the region, with enviable oil and gas resources, the report said.

In the residential market, sale and rental rates have continued to fall across the UAE in Q3 2010, as new supply from new developments and relocation exerts downwards pressure on prices. Freehold transactions over the past quarter have been slow, with buyers adopting a 'wait and see' attitude.

The commercial sector is being driven by tenants looking to renegotiate lease terms and take advantage of softening prices. An increase in supply also presents businesses with wider choice, especially in Abu Dhabi, which now offers a greater supply of high-grade office stock than at any other point in its history.

In Dubai, Cluttons notes a paucity of International Grade A office stock on the market under one landlord. Cheaper areas such as Jumeirah Lake Towers (JLT) and Business Bay are offering reduced prices, which are starting to affect rental prices in more established areas such as DIFC and Emaar Business Square, the report said.
The industrial and logistics sector has typically been the least affected of the property sectors. In Sharjah, the industrial sector remains robust, with average rents in the Free Zone areas remaining above Dhs25 per square foot. The outlook for the sector is stable over the coming months as limited supply and cautious occupier positions should reduce rent volatility.

Dubai has seen the re-emergence of professional investment groups taking an active interest in prime logistical areas such as Jebel Ali Free Zone (JAFZA) and Dubai World Central (DWC). These investors are seeking high quality, guaranteed income streams from well-capitalised organisations, the report added.
 
Dubai property market snapshot:

Residential Rents:
• Average apartment rental price down 8.2 per cent, compared with 11.8 per cent in Q2 2010.
• Average villa rental price down 4.2 per cent, compared with 6.1% previous quarter.

Residential Sales:
• Average apartment sales price down 8.7 per cent, compared with 5.7 per cent  Q2 2010.
• Average villa sales price down 4.3 per cent  compared with 4.7 per cent  Q2 2010.

Commercial:
• JLT, Emaar Square, Business Bay and TECOM rents remain stable from Q2 2010.
• DIFC offers highest rent in the Emirate at around Dhs250 per square foot.

Industrial:
• Prime Industrial rents remain stable Q2 2010 - Q3 2010.
• Al Quoz and Jebel Ali offer highest rents in the region of Dhs30 per square ft.
• The international property investor has re-entered the market, attracted by the bluechip logistic occupiers.

Abu Dhabi property market
 
Residential Sales:
• Marina Square and Al Raha Beach are the most expensive areas in Abu Dhabi.
• Residential supply is expected to reach over 230,000 sq metres by 2013.

Commercial:
• Average rents for prime office space have fallen by almost 50 per cent  since 2008.
• Commercial supply is at an all time high in Abu Dhabi, with over 400,000 square meters of office space due to be released to the market over the next 18 months.

Sharjah property market snapshot:

Residential:
• Supply in prime areas such as Al Khan and Al Mamzar has increased by 2,5000 units in the past 12 months.
• In some areas rental rates have been reduced by 9 per cent  during Q2 2010.

Commercial:
• Central Sharjah rents have fallen to just over Dhs50 per square ft per annum.
• Rates in Al Khan and Al Majaz have fallen to Dhs45 and Dhs55 per square foot respectively.

Industrial:
• Average rents in the Free Zones have remained above Dhs25 per square foot.
• The sea / air cargo sector is driving demand, with a 19& rise between Q1 2009 and Q1 2010.