Thursday, December 06, 2007

Dubai Property Market shows upward trend – Axis Residence sold out in Record Time

From 2002 to 2005 the supply of residential buildings in Dubai increased by more than 42%, rising from approximately 56,000 to 79,000 buildings. The demands for investment property and residential space connected to population growth have ensured that the amount of available units has risen by a remarkable 61% during the same period placing the total estimated supply at 234,930 units by end of 2005.

Demands for housing units continue to grow, with an estimated 100,000 people moving to Dubai every year. When available space is modeled against population growth, it becomes clear that since the year 2000 a reported minimum of 6% of yearly demand for single-family units has been left unsatisfied, creating

a market with high latent demand. Estimates of the total number of residential apartments and villas planned for completion before 2010 are between 170,000 – 240,000 units, with close to 110,000 apartments and 16,500 villa units now confirmed as under development

The historic performance of property prices suggests dramatic rewards for those investment buyers who entered the market early. A property index of key residential developments shows residential property prices to have close to tripled between 2002 and end 2006, with the prices of two-bedroom and three-bedroom villas increasing from an average of AED 474,000 and AED 705,000 to AED 1,360,450 and AED 2,110,000 respectively. Over the past four years individual villa prices have increased by as much as 226%, with the average price per sq. ft. rising from AED 331 in 2002 to AED 764 in 2006.Apartment prices show similar levels of inflation with studios and three-bedroom units rising from averages of AED 194,000 and AED 1,475000 in 2002 to AED 554,000 and AED 2,410,000 by the end of 2006. This suggests that over the past four years the cost of apartment units has increased by almost 100%, with the average price per sq. ft. rising from AED 533 to AED 949., the region’s global property and lifestyle brand offering comprehensive marketing solutions for property developers, investors and retailers, has announced the launch of the Dh295 million plus 'Axis Residences' at the Dubai Silicon Oasis by developer Gulf General Investment Company (GGICO) last week sold all the apartments with in record time, shows the real estate market trend in Dubai


Dubai Dude said...

This is pretty amazing, the way people are investing in Dubai Properties. According to some surveys this is going to be trend for next couple of years.

Dubai Dude

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