x Abu Dhabi, UAESaturday 23 September 2017

Dubai property builds on growth with 15% rise in home sales

The Dubai property market has delivered another quarter of growth with the number of home sales rising 15 per cent on the previous three months.

Dubai's most exclusive addresses have rebounded this year, driving prices higher in the city's top locations. Pawel Dwulit / The National
Dubai's most exclusive addresses have rebounded this year, driving prices higher in the city's top locations. Pawel Dwulit / The National

Dubai residential property has delivered another quarter of growth with the number of home sales rising 15 per cent on the previous three months.

A report from the property broker CBRE shows total transactions hit Dh4 billion (US$1.08bn) in the three months to last month compared with Dh3.1bn of deals in the first quarter.

"Recent sales activity has been highly concentrated within established community locations rather than new and emerging markets," said Matthew Green, CBRE's head of research.

Dubai's most exclusive addresses have rebounded this year, driving prices higher in the city's top locations.

But secondary areas continue to suffer from weakening demand as thousands of new units are delivered across the emirate.

The value of residential property transactions for the first half of the year is Dh7.1bn, with an average deal value of Dh1.2 million.

The report provides further evidence of the firming rental market in Dubai's most popular locations.

Average apartment rents gained 2 per cent on the previous quarter but still remain in negative territory on a year-on-year basis.

However, developments such as The Greens and Downtown Dubai recorded rent gains of between 5 per cent and 8 per cent over the previous quarter.

Some emerging locations such as Jumeirah Village continued to weaken, with rents falling about 5 per cent during the quarter.

Despite the delivery of hundreds of new villas in such locations, the rising supply is unlikely to dent rents or occupancy levels in the emirate's best locations, CBRE said.

With a working population already 1.3 million, Dubai aims to create 950,000 new jobs by 2020, with the retail, transport and tourism industries driving growth.

Bank of America Merrill Lynch this month estimated the emirate's active population would grow by 6.1 per cent on average over the next eight years - outpacing the increase in new homes.About 3,000 new units were completed in Dubai in the second quarter of this year, taking total residential stock to 344,000 units, according to Jones Lang LaSalle.

Developers expect to deliver an additional 24,000 new homes in the second half of this year.

scronin@thenational.ae

twitter: Follow and share our breaking business news. Follow us

iPad users can read the digital edition of business section as it was printed via our e-reader app. Click here