Tag Archives: dubai
Property prices in Ireland still rising but growth has slowed compared to a year ago
Residential property prices in Ireland increased by 7.4% in the 12 months to March 2016, down slightly from the 8% recorded in February. The latest data from the Central Statistics Office also show that while house prices are still rising the growth has slowed. In March 2015 the annual rise was 16.8%. Month on month property prices increased by 0.3% compared with no change recorded in February and an increase of 0.9% recorded in March of last year. In Dublin residential property prices increased by 0.9% in March and were 3.9% higher than a year ago. Dublin house prices increased by 1.2% in the month and were 4.1% higher compared to a year earlier. Dublin apartment prices were 1.6% higher when compared with the same month of 2015. However, it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland decreased by 0.2% in March compared with an increase of 0.7% in March of last year. Prices were 10.5% higher than in March 2015. It means that house prices in Dublin are now 34.3% lower than at their highest level in early 2007. Apartments in Dublin are 41.2% lower than they were in February 2007. Residential property prices in Dublin are 36.3% lower than at their highest level in February 2007. The price of residential properties in the rest of Ireland is 35.4% lower than their highest level in September 2007. Overall, the national index is 33.6% lower than its highest level in 2007. Continue reading
Dubai becoming increasingly popular with British property investors
Dubai is proving to be increasingly popular among British property investors with figures from the land department showing they put £1.9 million into the emirate’s real estate market in 2015. This made them the second largest group of foreign investors behind Indians with UK investment almost doubling in three years. Apartments are the top buy for British buyers, followed by residential and commercial land and then villas with low interest rates, good rental yields and tax free returns on investments behind the rise in investment. According to Sultan Butti Bin Mejren, director general of the Dubai Land Department, the infrastructure in Dubai and the high return on investment makes property in the emirate attractive to buyers from overseas. British investors are looking for a good capital return on their investment, according to Sultan Al Suwaidi, a partner of Sumansa Exhibitions, the company running next month’s Dubai Property Show in London. ‘Dubai is a dynamic global investment hub and has always had attraction for international investors. The property market continues to mature and stabilise as a result of strategically implemented government regulations,’ he pointed out. ‘Returns for both small and large apartments in Dubai are delivering between 7% and 10% yield which is higher than Hong Kong, Singapore and London. Many British people investing in Dubai properties are seeking capital appreciation more than using them as primary or secondary homes,’ he explained. The areas where British investors are buying include Dubai Marina, Palm Jumeirah, Jumeirah Lake Towers and Downtown Dubai. According to figures from the property website Bayut affordable locations such as Dubai Sports City are also becoming more popular. Dubai’s zero taxation on rental income and capital gains is one of the biggest factors that appeal to British buyers and foreign investors in general are inclined to build their portfolios in Dubai to avoid the high taxes in their respective countries. It is also expected that the forthcoming Expo 2020 will boost Dubai’s real estate sector. Last year alone, Dubai attracted 12 million tourists and it is estimated that by 2020 the number of visitors will increase to 20 million, offering holiday rental opportunities for real estate investors. According to international real estate firm JLL, residential prices in Dubai increased by 56% in the last two years and rents by an average of 41% while data from Knight Frank shows that prices have recovered from the downturn and are now close to their peak levels of 2008. Yield returns reached 7.42% in Dubai’s mainstream market in July 2015. Property brokers in Dubai estimate that yields in the cheaper areas of the city such as Sports City are around 6% to 8%. Financing is usually arranged through local banks which will loan foreign buyers up to 50% of the purchase price depending upon their terms and conditions. The buying process is different to the UK. There are no conveyancing solicitors as the Dubai Land Department does the checks and it normally takes about a month to complete… Continue reading
Latest data suggests slowing in residential markets in UAE
The residential property market in the United Arab Emirates seems to be going through a period of stabilisation with some locations seeing growth and others recording a slowdown. In the first quarter of 2016 sales and rental prices in upcoming, inland neighbourhoods across the UAE are rising while in prime areas they are falling, according to the latest property report from classified website Dubizzle. It records an increase of up to 13% in sales and rental prices in emerging locations such as Al Ghadeer, Al Reef and Al Furjan, when compared to the first quarter of 2015. For example, property sale prices in Abu Dhabi’s Al Ghadeer and Al Reef rose by 3% and 4% respectively when compared to the same quarter in 2015, while rental prices for one and two bed apartments in Al Reef rose by 9% while three bed apartments in Al Reef rose 11% and in Al Furjan in Dubai rents for one bedroom apartments increased by 13%. Meanwhile, prices in more established, central areas have dropped, for example rents dropped by 10% for one and three bedroom apartments in Abu Dhabi’s Corniche when compared to the first quarter of 2015. The same trend was seen in Dubai, where sales prices for properties in mature locations such as Business Bay, Dubai Marina, Downtown Dubai and Jumeirah Lakes Towers fell by between 8% and 10%. Business Bay saw rents for one bedroom apartments fall by 5% and two bedroom apartments were down by 4% while the rental price for three bedroom apartments remained unchanged. Data from property firm Bayut also records falls in some locations in Dubai in the first quarter of 2016. Rents were down by 3% year on year and sale prices down 6%. The firm believes that as more and more households move to the suburbs, investment opportunities in areas like Dubailand and Dubai Sports City could become more enticing. It suggests that the increased popularity of these localities coupled with low property prices has resulted in rental yields as high as 9%. ‘We think Dubai’s suburbs are ideal for both new home buyers who can still benefit from low prices and investors, who can enjoy impressive rental yields thanks to these areas’ rising popularity,’ the report says. Continue reading
