Tag Archives: middle-east
Rents, sales and prices record moderate falls in Dubai in first quarter of 2016
The Dubai residential real estate market is experiencing moderate declines in rents and sales prices and transaction volumes are also down, according to the latest UAE property review. The analysis report from Asteco suggests that a focus on affordability is becoming more prominent in the emirate’s real estate market. Whilst no significant rent reductions were recorded during the first quarter of the year this may have been due to limited supply and the general trend continued to be towards increased competition amongst landlords. Leasing demand was stable in the first two months of 2016, however, a slowdown was recorded from March onwards, especially for more expensive properties where take-up was slower than usual. On average, rental rates stabilised in the affordable segment, and declined by 2% and 3% for mid and high end apartments, respectively. Asteco says that this minimal decrease was due to a combination of landlords trying to retain tenants rather than insisting on higher renewal rates, a decrease in the number of newcomers to the city, and in some sectors, housing allowance cuts and redundancies. Compared to the previous quarter, sales prices remained stable, with the exception of high end apartments and villas where 2% average declines for both markets were recorded. However, according to the Dubai Land Department (DLD), the first quarter of 2016 was considerably worse than the first quarter of 2015 as the overall residential transactions by total value were down by 25%, transaction numbers by 17% and the average sales price by 11%. Leasing activity at the beginning of the year started well, however, enquiry and transaction levels tapered off in March. The report suggests this was partially due to property owners keen to retain their existing tenants, and therefore willing to negotiate rental rates instead of having a property vacant. As a result, fewer tenants were seeking to move to a new unit. Asteco also noted a tendency for the more expensive units in buildings to remain vacant for longer, as tenants became more conscious of their spending habits. Whilst declines were limited over the quarter, year on year comparisons indicated an average of a 4% decline across the board. The most affected areas were those that had seen previous rapid rental increases for a relatively undifferentiated product. For instance, Jumeirah Lake Towers recorded a 12% decline year on year. ‘Indeed, whilst the community is attractive overall, the quality of most residential towers are below the tenant’s expectations considering the high rental levels. We have noted an increase in demand for affordable units. However, rental rates have not fallen far enough to warrant tenants to relocate from the Northern Emirates to Dubai yet,’ the report points out. ‘This is further compounded by the fact that for a similar priced product in the Northern Emirates would equate to a much smaller unit in Dubai. For instance, AED60,000 would mean a two bedroom unit in Sharjah as opposed to a studio or a small… Continue reading
Demand from buyers in UK falls to two year low
Demand for housing in the UK is at its lowest level in two years with the number of house hunters making enquiries down by a fifth in April, new research shows. Estate agents also reported that the number of sales made to first time buyers fell in April. The April Housing Market report from the National Association of Estate Agents (NAEA) shows there were 325 house hunters registered per member branch on average last month. This was the lowest number recorded since March 2014, when there were 313 house buyers recorded at each estate agent branch. This means demand has decreased by 22% from 417 in March. Last month, the supply of houses available for buyers also decreased by 35% from 54 properties available in March to 35 in April. Some 26% of the total sales made in April were to first time buyers, a decrease of 2% compared to March. However, some 33% of estate agents expect sales to this group to increase following the buy to let stamp duty changes as buy to let landlords exit the market, potentially freeing up properties for first time buyers. The monthly research also found that 24% of estate agents expect house prices to decrease and a further 23% expect demand to decrease if Britain votes to leave the European Union in the referendum on 23 June. Indeed, a recent Brexit report from the NAEA and that Association of Residential Letting Agents (ARLA) revealed that by 2018, a Brexit would reduce the average UK house price by £2,300 to £300,900. However, if Britain remains in the EU, the average UK home could cost £303,000 by 2018. ‘It’s no surprise that demand dropped significantly in April. Some 80% of agents saw an increase in purchasers trying to beat the buy to let stamp duty changes before the 01 April deadline, so we expected to see a slow down immediately following the deadline,’ said NEA managing director Mark Hayward. ‘Whilst the number of house hunters registered per branch dropped in April, the supply of available housing to buy also fell quite sharply, so supply and demand are still moving in the opposite direction, rather than balancing out,’ he explained. ‘Additionally, the upcoming EU Referendum means we’ve entered a period of uncertainty, as buyers put off their hunt in anticipation of the result, and what might happen to prices as a result,’ he added. Continue reading
A good school comes top of home buying priorities in UK
Good schools have come out top in a survey of parents in the UK asked about their priorities when choosing a place to live. Some 72% of parents placed a good local school among their top three, followed by 37% favouring somewhere with good transport links and 33% highlighting the importance of a community feel, according to the research from Redrow Homes. Being close to family members came fourth overall but, while this was a big priority for 33% of mums, only 22% of dads saw it as important. When children were asked what's most important to them about where they live, 60% said it was being near to their friends, followed by 49% who liked to be close to school while 47% valued having lots of parks and green space nearby, and 17% who thought being near facilities such as a cinema was vital. Parents were also asked about their dream home and what they look for most in the property itself. Some 54% chose a new build, either in the city, country or suburbs. The research found that not everyone is happy with their current home with only half of those living in an old house in the country saying this is their dream home type and a quarter actually admitting they dream of living in a new build in the country. Some 65% of those who already live in a new build in the country, city or suburbs say it's their dream home type. In terms of what they look for in the property itself, outdoor space came out overwhelmingly on top with 74% picking a garden as one of their top three desirable features, followed by 44% wanting off-street parking and 39% storage space. A modern fitted kitchen with integrated appliances and a house that is economical to run were also popular attributes, chosen by 23% and 22% respectively. The research shows how important choosing the right home and neighbourhood is for people buying a home, according to Dave Bexon, group sales and marketing director for Redrow Homes. The research also found that when asked what they liked most about their own homes, children chose their bedroom, with almost three quarters placing it among their top three. Maybe to be expected, personal space becomes more important as children get older, with 81% of youngsters aged 11 to 16 choosing their bedroom among their favourite things about their home, compared to 69% of children aged four to 10. A garden came second, with 45% of all children surveyed saying it was one of the things they liked most, followed by the living room. Continue reading
