Delivery of new properties slowed down in Dubai : Asteco

dubaiBy Accommodation Times News Services

Leading Property Broker Asteco has said in its Quarterly Report on Dubai that

“With fears of an oversupply, developers have slowed down the delivery of new properties, which has led to a relative stability of rental rates over the first half of the year, although there has been a significant movement of tenants.

If supply continues to be handed over at the same rate as in the first half of the year, the market could witness some rental growth in select areas, especially as the IMF predicts an improved GDP growth of 3.7% this year compared to 3.6 % in 2015.”

In an another report Asteco said maintains:

  • The first quarter of 2016 appears to have set the tone for the next few months with moderate declines in rental rates and sales prices, a reduction in the number and volume of transactions, and a focus on affordability.
  • Whilst no significant rent reductions were recorded during the quarter due to limited supply being handed over, the general trend continued to be towards increased competition amongst landlords.
  • Going forward, much of the planned supply for the year could be delayed, which would result in slower than anticipated rental declines.
  • Interestingly, developers continued to launch both affordable and higher end properties during the quarter, despite the general negative market outlook.
  • Whilst there was some take-up, especially from investors, this was due to attractive incentives being offered, such as guaranteed returns and post completion payment plans. Cash buyers were able to secure attractive bulk deals as they saw an opportunity in the market.”

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