9 October 2017

Dubai: Premiums Under the Microscope

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Spectrum of premia and discount relative to the mean then encompasses many factors that include the upkeep of individual units, the breakdown of the respective units, views, as well as qualitative factors such as road noise, neighboring construction, etc. The value of a granular analysis suggests end user buying patterns that only evolve over time. Preferences such as pedestrian access to schools, and less noise pollution, alongside a greater demand for serenity and green patches should assist in guiding investors in gauging demand in other communities across Dubai.

In the Shoreline Apartments that are road facing trade at a discount compared to the buildings that are on the sea-side.

In The Views buildings completed before 2007 are similar to old greens, whereas as post 2007 the buildings were more upscale.

In the JBR buildings at the front of the community trade at a premium to the ones at the front.

As communities mature, and as end users start to dominate certain areas, qualitative factors start coming to the forefront; these factors not only help in the guidance of investors, they also assist in designing subsequent master communities.

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