Trends on UAE property market steady: Bayut

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JBR DubaiThe sales and rental market in the UAE’s biggest cities Dubai and Abu Dhabi has been steady last year and will continue to stabilise in 2015, according to the latest market report by UAE-based property portal Bayut.com.

With a stable economy and transparency of its market, the UAE continues to see an increase in capital inflow. Dubai’s performance in the past two years has lead the emirate to become more and more steady, the report says.

The government made an effort to slow down further price increases by taking regulatory measures, such as the introduction of 75 per cent mortgage cap for expatriates and 80 per cent for UAE nationals, being issued by the UAE Central Bank. Transfer fees also increased from 2 to 4 per cent, resulting in the stabilisation of property prices and limiting further escalation in the residential sector.

The Expo 2020 has resulted in investors gaining confidence in the country’s hospitality sector. The emirate’s growing number of tourists brings immense potential that investors have gradually started to discover.

Let’s see below the performance of the two most searched-for emirates on Bayut.com. We will learn what the market search trends on Bayut.com say about the most popular localities within Dubai and Abu Dhabi, for sale and rent in the year 2014.

 

ABU DHABI

SALE TRENDS

  1.        Al-Reem Island
  2.        Al-Raha Beach
  3.        Al-Reef Villas
  4.        Saadiyat Island
  5.        Al-Ghadeer

Al-Reem Island was the most-searched locality on Bayut.com with 16.96 per cent of the total searches conducted for residential properties in Abu Dhabi last year.

The second most-searched locality with 7.66 per cent was Al-Raha beach, on Bayut.com. A mix of residential, commercial and public facilities, Al-Raha will ultimately accommodate up to 120,000 residents.

Number three on Bayut.com’s list of most searched localities in 2014 was Al-Reef Villas with 6.02 per cent, a residential community designed to accommodate over 16,000 residents.

With 5.99 per cent searches in its name, Saadiyat Island was the fourth most searched locality on Bayut.com.

In fifth place, Al-Ghadeer received a total of 4.89 per cent of the total searches for residential property for sale on Bayut.com.

 

RENTAL TRENDS

  1.        Al-Reem Island
  2.        Khalifa City A
  3.        Al-Raha Beach
  4.        Al-Muroor
  5.        Al-Reef Villas

Closing the year as the most popular locality in Abu Dhabi for investment and for rent, Al Reem Island stayed on the top spot with 6.26 per cent of all searches for residential property on the UAE’s leading property portal, Bayut.com.

Giving tough competition to Al-Reem Island in 2014, Khalifa City A got a total of 5.97 per cent of all the searches for rent in Abu Dhabi.

Al-Raha Beach took the third spot with 3.56 per cent of all the searches that were made for rental properties in Abu Dhabi.

Holding a steady fourth position through the first and second quarters of 2014, Al-Muroor ended the year in fourth place, with 2.64 per cent of all rental searches in Abu Dhabi in 2014.

Al-Reef Villas fought for last position against Al-Muroor till the end of the year and got out with 2.26 per cent of all rental property searches within Abu Dhabi.

 

DUBAI

SALE TRENDS

  1.        Dubai Marina
  2.        Downtown Dubai
  3.        Jumeirah Lake Towers
  4.        Dubai Sports City
  5.        Business Bay

As we go further into 2015, Dubai Marina continues to be in the first position with 11.91 per cent on Bayut.com’s list of the most popular localities in Dubai.

Taking up 6.89 per cent of the total searches, Downtown Dubai has secured the second place on our list of most popular localities for investment in Dubai.

Jumeirah Lakes Towers has successfully taken the third spot with 5.42 per cent of the total searches.

In fourth place, Dubai Sports City showed up in 4.73 per cent of the total searches conducted for property for sale on Bayut.com.

Business Bay had a total of 3.02 per cent of the total searches for properties for sale on Bayut.com.

 

RENTAL TRENDS

  1.        Dubai Marina
  2.        Jumeirah Lake Towers
  3.        Bur Dubai
  4.        Downtown Dubai
  5.        Business Bay

As predicted, Dubai Marina took the first place again, as the most searched locality on Bayut.com for properties for rent in 2014. The locality showed up in 10.75 per cent of all the search results.

Jumeirah Lakes Towers got 4.81 per cent of the total searches for rental properties going its way on Bayut.com, last year.

Bur Dubai gained popularity with 4.42 per cent searches on Bayut.com, compared to 2013’s 3 per cent.

Downtown Dubai came in fourth place with 4.20 per cent of the total rental searches made for the locality in 2014.

Business Bay remained with the same numbers as 2013, and pulled a steady 3.03 per cent of searches for residential properties for rent in 2014.

FINAL ANALYSIS

Residential options in Dubai eased up in 2014 quite significantly after showing great numbers in 2013. Rents rose as demand continued to grow. The real estate sector performed well, but transactions slowed down in Dubai.

According to data released by the Dubai Land Department (DLD), transactions decreased by 50 per cent in May 2014 as compared to the same time in 2013. However, despite the announcement of new projects, there was balanced activity from both, investors and developers in 2014.

“Construction activity is picking up pace again thanks to the revival in real estate developments and infrastructure projects. The recovery in real estate prices, a bounce in bank financing for construction, and the return of off-plan sales in particular have motivated developers to resume the projects that were on hold in both Abu Dhabi and Dubai,” said Bayut.com’s CEO Haider Ali Khan.

“However, there are still concerns that returning speculation, including through off-plan sales, could make Dubai head towards excessive price growth and rapid over-development. The year 2015 will see a balance in supply and demand if the number of new households continues to grow around the recent rates. This would underpin the recent price gains, but suggest more moderate increases,” he added.

Another important factor to keep in mind is foreign investment. Expats are responsible for a major part of the Emirates’ real estate investment, and foreign buyers will play an important role in future demand. Almost half of last year’s real estate transactions were made by foreigners, with investment totalling Dh113 billion, according to the DLD. The three top investors by nationality were Indians (Dh10 billion), Britons (Dh5 billion) and Pakistanis (Dh4.5 billion), while GCC nationals together, accounted for Dh33 billion.

 

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Reading Time: 4 minutes

The sales and rental market in the UAE’s biggest cities Dubai and Abu Dhabi has been steady last year and will continue to stabilise in 2015, according to the latest market report by UAE-based property portal Bayut.com.

Reading Time: 4 minutes

JBR DubaiThe sales and rental market in the UAE’s biggest cities Dubai and Abu Dhabi has been steady last year and will continue to stabilise in 2015, according to the latest market report by UAE-based property portal Bayut.com.

With a stable economy and transparency of its market, the UAE continues to see an increase in capital inflow. Dubai’s performance in the past two years has lead the emirate to become more and more steady, the report says.

The government made an effort to slow down further price increases by taking regulatory measures, such as the introduction of 75 per cent mortgage cap for expatriates and 80 per cent for UAE nationals, being issued by the UAE Central Bank. Transfer fees also increased from 2 to 4 per cent, resulting in the stabilisation of property prices and limiting further escalation in the residential sector.

The Expo 2020 has resulted in investors gaining confidence in the country’s hospitality sector. The emirate’s growing number of tourists brings immense potential that investors have gradually started to discover.

Let’s see below the performance of the two most searched-for emirates on Bayut.com. We will learn what the market search trends on Bayut.com say about the most popular localities within Dubai and Abu Dhabi, for sale and rent in the year 2014.

 

ABU DHABI

SALE TRENDS

  1.        Al-Reem Island
  2.        Al-Raha Beach
  3.        Al-Reef Villas
  4.        Saadiyat Island
  5.        Al-Ghadeer

Al-Reem Island was the most-searched locality on Bayut.com with 16.96 per cent of the total searches conducted for residential properties in Abu Dhabi last year.

The second most-searched locality with 7.66 per cent was Al-Raha beach, on Bayut.com. A mix of residential, commercial and public facilities, Al-Raha will ultimately accommodate up to 120,000 residents.

Number three on Bayut.com’s list of most searched localities in 2014 was Al-Reef Villas with 6.02 per cent, a residential community designed to accommodate over 16,000 residents.

With 5.99 per cent searches in its name, Saadiyat Island was the fourth most searched locality on Bayut.com.

In fifth place, Al-Ghadeer received a total of 4.89 per cent of the total searches for residential property for sale on Bayut.com.

 

RENTAL TRENDS

  1.        Al-Reem Island
  2.        Khalifa City A
  3.        Al-Raha Beach
  4.        Al-Muroor
  5.        Al-Reef Villas

Closing the year as the most popular locality in Abu Dhabi for investment and for rent, Al Reem Island stayed on the top spot with 6.26 per cent of all searches for residential property on the UAE’s leading property portal, Bayut.com.

Giving tough competition to Al-Reem Island in 2014, Khalifa City A got a total of 5.97 per cent of all the searches for rent in Abu Dhabi.

Al-Raha Beach took the third spot with 3.56 per cent of all the searches that were made for rental properties in Abu Dhabi.

Holding a steady fourth position through the first and second quarters of 2014, Al-Muroor ended the year in fourth place, with 2.64 per cent of all rental searches in Abu Dhabi in 2014.

Al-Reef Villas fought for last position against Al-Muroor till the end of the year and got out with 2.26 per cent of all rental property searches within Abu Dhabi.

 

DUBAI

SALE TRENDS

  1.        Dubai Marina
  2.        Downtown Dubai
  3.        Jumeirah Lake Towers
  4.        Dubai Sports City
  5.        Business Bay

As we go further into 2015, Dubai Marina continues to be in the first position with 11.91 per cent on Bayut.com’s list of the most popular localities in Dubai.

Taking up 6.89 per cent of the total searches, Downtown Dubai has secured the second place on our list of most popular localities for investment in Dubai.

Jumeirah Lakes Towers has successfully taken the third spot with 5.42 per cent of the total searches.

In fourth place, Dubai Sports City showed up in 4.73 per cent of the total searches conducted for property for sale on Bayut.com.

Business Bay had a total of 3.02 per cent of the total searches for properties for sale on Bayut.com.

 

RENTAL TRENDS

  1.        Dubai Marina
  2.        Jumeirah Lake Towers
  3.        Bur Dubai
  4.        Downtown Dubai
  5.        Business Bay

As predicted, Dubai Marina took the first place again, as the most searched locality on Bayut.com for properties for rent in 2014. The locality showed up in 10.75 per cent of all the search results.

Jumeirah Lakes Towers got 4.81 per cent of the total searches for rental properties going its way on Bayut.com, last year.

Bur Dubai gained popularity with 4.42 per cent searches on Bayut.com, compared to 2013’s 3 per cent.

Downtown Dubai came in fourth place with 4.20 per cent of the total rental searches made for the locality in 2014.

Business Bay remained with the same numbers as 2013, and pulled a steady 3.03 per cent of searches for residential properties for rent in 2014.

FINAL ANALYSIS

Residential options in Dubai eased up in 2014 quite significantly after showing great numbers in 2013. Rents rose as demand continued to grow. The real estate sector performed well, but transactions slowed down in Dubai.

According to data released by the Dubai Land Department (DLD), transactions decreased by 50 per cent in May 2014 as compared to the same time in 2013. However, despite the announcement of new projects, there was balanced activity from both, investors and developers in 2014.

“Construction activity is picking up pace again thanks to the revival in real estate developments and infrastructure projects. The recovery in real estate prices, a bounce in bank financing for construction, and the return of off-plan sales in particular have motivated developers to resume the projects that were on hold in both Abu Dhabi and Dubai,” said Bayut.com’s CEO Haider Ali Khan.

“However, there are still concerns that returning speculation, including through off-plan sales, could make Dubai head towards excessive price growth and rapid over-development. The year 2015 will see a balance in supply and demand if the number of new households continues to grow around the recent rates. This would underpin the recent price gains, but suggest more moderate increases,” he added.

Another important factor to keep in mind is foreign investment. Expats are responsible for a major part of the Emirates’ real estate investment, and foreign buyers will play an important role in future demand. Almost half of last year’s real estate transactions were made by foreigners, with investment totalling Dh113 billion, according to the DLD. The three top investors by nationality were Indians (Dh10 billion), Britons (Dh5 billion) and Pakistanis (Dh4.5 billion), while GCC nationals together, accounted for Dh33 billion.

 

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