Dubai prime homes see modest price growth

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Dubai prime homes see modest price growth
Properties at Dubai Marina.

Dubai Marina remained the top-performing prime community in second quarter

By Deepthi Nair

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Published: Thu 21 Jul 2016, 7:10 PM

dubai - Despite the global turmoil caused by Brexit and other geo-political events, Dubai's prime residential market remained stable in the second quarter of the year, reflected by a modest 0.03 per cent growth. Dubai Marina remained the top-performing prime community in Q2.
The overall residential real estate market witnessed a slump by 13 per cent over the last quarter, according to Reidin and Luxhabitat.
Jason Hayes, head of new developments at Luxhabitat, said: "This figure may not be seen as staggering growth but it demonstrates stability in Dubai's prime market. Q2 has seen some prime new developments released to the market and investor appetite has proven to be robust. The Dubai Hills Estate has gone from strength to strength in Q2 with projects such as Fairways Vistas selling out. These launches demonstrate the market demand for quality luxury off-plan developments. Downtown projects continue to stall. I envisage an uplift in transactional activity in Q3 and Q4."
Dubai Marina emerged as the top-performing area, with over 356 transactions. Price per square feet in the area has declined from the last quarter by seven per cent. Prices for the Dubai Marina peaked in 2014 and has been steadily declining since then.
Daniel Garofoli, luxury sales specialist of Luxhabitat, said: "Apartment prices per square feet for properties in quality towers with the best layouts and views are stable. The fall of the price per square feet of the overall market is cause by investment units, 1-beds with low floors and courtyard or no good view. These are selling for any price at the moment. However, buying in a supreme location always gets you the money back and the return on investment per year."

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