Dubai
The upturn in demand for freehold Dubai’s freehold has been felt across the board, but some locations are proving investor hotspots. The Downtown — excluding the Burj Khalifa — has recorded a 9.8 per cent gain in the last 15 months, according to ValuStrat.
The consultancy notes that this came about even as citywide residential capital values are about 14.3 per cent below their mid-2014 peak. Even the Downtown is still 16.9 per cent below its own peak.
But there are some stark differences in how investor interest is shaping up at the Downtown. Within the secondary market, sales have been geared towards smaller apartment units and in towers that don’t “necessarily have the same views and locations, but cost far less than the new stock,” the consultancy states.
Even then, 62 per cent of Downtown sales have been off-plan, with most of apartments sold in Downtown Views, Bahwan Towers, and The Address Residences Dubai Opera. The median sale price is Dh2.45 million.
But the IL Primo apartments had ticket prices of above Dh18 million.
Of the 38 per cent representing secondary market sales, transactions were focused on 8 Boulevard Walk, Burj Lofts, South Ridge, Burj Views and 29 Burj Boulevard. The median ticket size was Dh1.6 million.
“Capital growth for secondary apartment prices in Downtown Dubai might seem illogical at first, given the off-plan competition,” said Haider Tuaima — Head of Real Estate Research at ValuStrat.
“The secondary and off-plan markets are operating at different levels, as most new projects are focused on the (ultra)-luxury market offering large units in strategic locations with superior views.”
In the last 10 years, 25 residential projects were completed within the master-development, adding an estimated 10,600 units. In the next four years, Downtown Dubai will double in capacity as an additional 10,800 units from 28 residential projects are currently under construction.
