Downtown Dubai homes register price gains

dubai - International City, Media Production City, Discovery Gardens and Remraam also see price appreciation

A few pricey locations in Dubai are seeing value gains, with properties in Downtown Dubai performing well, according to consulting firm ValuStrat.

Excluding the Burj Khalifa, Downtown Dubai apartments saw the highest monthly uplifts in capital values averaging 5.2 per cent in March, though prices there are still 19 per cent below their peak of 2014, says ValuStrat.

In contrast, three locations - International City, Motor City and Media Production City - remain less than five per cent off the peak.

Other communities that witnessed monthly capital appreciation were Jumeirah Village, Arabian Ranches, Jumeirah Park, International City, Media Production City (IMPZ), Discovery Gardens and Remraam.

Meanwhile, Jumeirah Village apartments, Dubai Marina, Jumeirah Lakes Towers, Palm Jumeirah apartments, Burj Khalifa, Jumeirah Islands, the Meadows and Al Furjan villas saw capital declines of 0.6 per cent to 2.5 per cent.

ValuStrat estimates this year's total new supply of residential apartments and villas at 25,000 units. However, this number is likely to be subject to a significant downward adjustment. More than 50 per cent of the expected supply is focused in four locations: Dubailand (19 per cent), Dubai Silicon Oasis (17 per cent), International City (eight per cent) and Dubai Sports City (7.5 per cent).

As for the best yields, currently Dubai Sports City, Remraam and Dubai Production City offer the best - at 7.1, 6.9 and 6.7 per cent, respectively. And asking rents this (first) quarter are now effectively back to the same level as Q1-13, according to ValuStrat.

Meanwhile, the consultancy which has brought out an office index tracker, says Barsha Heights offices had the highest increases, while Business Bay's took a dive.

- business@khaleejtimes.com