Special Features
UAE real estate stabilizes in Q2 2014
Dubai’s real estate market is currently controlling rental price upturns amidst recovering market activity and increasing stability resulting from government actions such as raising registration fees from 2 to 4 per cent and ensuring more transparency through integrated system checks. These actions aim to rein in the market and reduce price speculations.With its population expected to grow 7 per cent to 3.4 million from 2015 to 2020, Dubai is expected to experience increased demand for real estate during the said period. At present, the best residential rental options can be found at International City (studio ~ AED 39,000, 1-bedroom ~AED 51,000, 2-bedroom ~ AED 72,000), Dubai Silicon Oasis (studio ~ AED 46,000, 1-bedroom ~AED 62,000, 2-bedroom ~ AED 87,000), and Discovery Gardens (studio ~ AED 52,000, 1-bedroom ~AED 70,000).
Good sale prices, on the other hand, can be had at International City (studio ~AED 409,000, 1-bedroom ~AED 568,000, 2-bedroom ~AED 920,000), Dubai Silicon Oasis (studio ~AED 468,000, 1-bedroom ~AED 734,000, 2-bedroom ~ AED 1.204 million), and Dubai Investment Park (studio ~ AED 470,000, 1-bedroom ~AED 782,500, 2-bedroom ~ AED 960,000).
As for office spaces, demand in Dubai continues to be far less than supply although the gap is closer compared to past figures. TASWEEK expects demand to gradually climb over the next two to three quarters parallel to the projected economic growth of the emirate. Rents have generally remained the same through Q2, with Dubai Silicon Oasis and Dubai Investment Park offering the lowest rates per square feet and Dubai Marina and the Dubai International Financial Centre fetching the highest.
