Demand for premium housing on the rise in Dubai and Abu Dhabi

Demand for premium housing on the rise in Dubai and Abu DhabiImage Credit: Supplied

Dubai Prime and High-End Apartment Developments

* Although several communities in Dubai are classified as premium only, specific buildings fit into this category.

* In Downtown Dubai, prime buildings include Burj Khalifa as well as The Address Towers by Emaar. The former provides serviced residences on a fully furnished basis that are available for sale and on lease.

* There has been favourable demand for prime buildings throughout Dubai, which, to a certain extent, has been in response to the launch of several new prime products such as the Opera Grand Tower by Emaar in Downtown Dubai. The property will offer incredible views of Burj Khalifa and the Dubai Fountain as well as 200 luxurious two-, three- and four bedroom apartments.

* At Palm Jumeirah there are several new prime buildings including serviced residences located on the Palm Crescent and attached to a luxury resort, such as the Kempinski Residences or the Anantara Residences.

* Of the prime, non-serviced buildings, Oceana and Tiara are the best established and will demand rents starting from Dh150,000 per year for a non-furnished one bedroom unit. These will sell starting at Dh2,500 per sq ft. These properties are specifically popular due to their location, which provides easy access to and from the Palm.

* Burj Daman is one of the new significant prime buildings in DIFC due to be handed over soon. The building features high-quality apartments with great facilities and amenities and will be available for rent in this quarter. The building's units are on sale with prices starting at Dh2,000 per sq ft.

Abu Dhabi Prime And High-End Apartment Developments

* The Abu Dhabi residential market, especially the apartment sector, has gone through considerable changes since 2012, with large numbers of better quality properties coming up in the market.

* Asteco has classified prime and high-end properties according to an internal grading system. Prime developments are the best developments available in Abu Dhabi, a part of highend mixed-use communities in prime locations attached to prestigious hotels and retail properties. They come with excellent facilities and amenities. High-end properties have some but not all the features required to be considered prime properties.

* A high percentage of the new investment stock is considered high end with only a few properties qualifying as prime.

* Prime and high-end developments in Abu Dhabi continue to see considerable increase in rents and sale prices. Developments such as Al Bandar on Al Raha Beach have achieved sale price hikes of up to 12 per cent since the first quarter of this year, and as high as 28 per cent since the second quarter of 2013.

* Sun & Sky Towers has achieved an increase of 9 per cent since last quarter and up to 21 per cent since the second quarter of 2013. The high sale prices are driven by demand for quality finishing and end user interest in a complete, self-sustained community, which includes retail facilities.

* Similarly, rents have increased by 8 per cent and 9 per cent in Sun & Sky Towers and Al Bandar respectively since last year. Nation Towers has also seen an increase of 7 per cent in rent since last year.

* The removal of the rent cap in Abu Dhabi last November has marginally affected prime and high-end properties compared to mid-range and low-end properties, as these developments were let recently at market rates.

Source: Property Weekly


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