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Signs of selective gains are starting to show up in Dubai’s property market — for the first time in several quarters, sales of Dh10 million and plus villas are seeing a marked improvement. Their sales nearly “doubled” in the first three months compared to the quarter previous, according to first quarter 2016 data from ValuStrat.
In fact, “their share of overall villa registrations increased from 5.7 per cent in the last quarter to 11.1 per cent now,” said Haider Tuaima, Research Manager. The spike may have had to do several off-plan villa launches that happened in recent weeks and finding favour with investors. Much of the 2016 supply will come from projects carried over from last year. The off-plan residential projects launched in the first quarter of 2016 should add more than 2,000 units to the residential base in the years up to 2021.
Long-term capital appreciation
After a relative “stable” nine months relative to pricing, ValuStrat research reckons that more end users are “seeking to get on the property ladder, anticipating long term capital appreciation while saving on monthly rental expenditure. “Dubai’s apartment market has shown a slight quarterly improvement in values, up 0.1 per cent while the villa market saw values marginally decline by 0.2 per cent,” it adds. “The median apartment value in March was Dh1,319 per square foot and for villas it was Dh1,361 per square foot.”
Source: Staff Report, gulfnews.com