Dominating Factor in the Residential Sector
Junaid Iqbal Mohammed Memon has made a name for himself as a property developer and investor. Based in Dubai and London, he was responsible for the inception of the Cloud 9 Group. Being from a family of businessmen, he has learned from an early age about the intricacies of the business world which helped him establish a name as an investor. Later on, he ventured into property development and to date, he has completed a number of projects under his name. He manages and owns businesses and properties in London and Dubai.
Pressure due to oversupply continues to plague Dubai’s residential market. A recent report on the emirate’s property market performance for the second quarter of 2018 showed that there has been a continued softening of the rental rates for villas and apartments. The first quarter saw a softening of 4% and 2% for the second quarter. The average sales prices for villa have also remained flat for the same period.
According to the latest data, affordability remains to be a dominant factor in the emirate’s residential sector. The mid-market segment witnessed the highest uptake. It appears that lately, one-time tenants are trying to take advantage of a variety of affordable and flexible payment plans and have chosen to buy properties.
One of the top trends this year is affordability. This is especially true with the large amount of supply that is steadily entering the market. As a result, developers are now focusing on a mid-market segment that is investment –active. The prices are being kept attractive through a variety of smaller units along with flexible payment options. This has piqued the interest of a number of would-be investors.
This report further showed that looking from the viewpoint of apartment sales, Business Bay has rebounded quite well after its last quarter decline of 9%. At the time, it was considered as the steepest decline in the emirate. However, it has notched a 4% increase this quarter at AED 1,226 per square feet. Still, this figure is way below the price for the 2017 Q2, which was at AED 1,268 per square feet.
Another standout performer is Jumeirah Village Circle. For this quarter, it has increased its prices by 6% to now AED 871 per square feet. This was after it bore the brunt of the 8% decrease that it experienced in Q1. The only other area which also saw growth was Dubai Motor City where it increased by 2% and is now priced at AED 822 per square feet.
The steepest decline was experienced by International City at 7%. The prices have dropped to AED 589 per Square feet. The Greens also experienced its fourth-quarter decline at 2% leaving prices now at AED 1,077 per square feet.
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Several factors are being looked into as the cause for the decline in the rental rates. These include reduced prices and greater choices. Going forward, landlords and developers should focus on quality. This is because tenants now proactively look for the cheaper options or go for those units that are better quality for the same price as the unit that they are presently renting at. Learn more about the property development market by reading about Junaid Iqbal Mohammed Memon online. You can also follow Junaid Iqbal Mohammed Memon on Twitter. Learn more about Junaid Iqbal Mohammed Memon by checking out his website here.