14 July 2013

Return on investment driving UAE property interest

Strong returns on investment are helping to ensure UAE property stays on an upwards trajectory. The latest market intelligence report by Tasweek Real Estate Development and Marketing showed both Dubai and Abu Dhabi are performing well, attracting more and more investors to the region. Masood Al Awar, Tasweek chief executive officer, told AMEinfo that confidence in the market is increasing thanks to high return on investments and “the improving ability among developers and owners to meet their financial commitments”.

In Dubai, property prices and rents increased for the 16th consecutive month in March, illustrating the steady and sustained recovery of the market. So far in 2013, the value of sales has increased by 63 per cent, with an average of 32 transactions completed every hour, the business news provider reported. Demand isn’t confined to just one market either, with activity up end-to-end. This has been attributed to the higher population growth rate and stronger investor sentiment. In March, property prices increased 18.3 per cent over the previous year.

Abu Dhabi’s property market is also experiencing a period of prosperity, with investor focus concentrated on island projects such as Reem Island, Al Raha Beach, Saadiyat Island and Yas Island. Luxury apartments are springing up right, left and centre, and the island’s are experiencing pleasing rental growth. However, over the past six months the emirate has been prone to property price fluctuations.

REIDIN.com‘s United Arab Emirates Residential Property Price Indices for May also painted a positive picture of the UAE property market. All residential values grew by 4.2 points from 208.3 to 212.5 in Dubai – an increase of 2.01 per cent month-on-month and 16.1 per cent year-on-year. Prices in the apartment segment are also performing well, rising 2.13 per cent throughout May. What’s more, rents are increasing, up 11.9 per cent year-on-year. This is good news for investors looking for strong returns. The prime market could prove to be particularly lucrative, however, with Knight Frank’s rental index showing Dubai prime property posted the strongest growth globally in Q2.

Source: www.propertyshowrooms.com