Sale prices of Dubai residential and office properties fell by an average 9,5% in 2015, according to a report by Asteco. The real estate consultancy firm recorded a price decrease of 13% on the retail prices in the Palm Jumeirah area over the year, with an average decrease on the square foot average price of aprox. 650 USD and a 300 USD drop in the Meadows and Jumeirah Beach Residence on average. The Asteco report says that a total of 13,500 apartments and 800 villas were added to Dubai’s residential real estate supply in 2015: 29.700 residential units (apartments and villas) are scheduled to be delivered in 2016, which is likely to lead to a further rental rate decrease this year.
John Stevens, managing director at Asteco commented on the report saying: << With fresh new supply entering the market, this is forcing property owners, especially of older independent villas, to become increasingly competitive on pricing >>. The trend reflects our analysis in the latest forecasts following the Dubai World Expo 2020 anouncements.
Meanwhile Sheikh Mohammed is said to have approved a design by the world famous architect Santiago Calatrava: a daring project of a new building in the Dubai creek area inspired by Islamic architecture and expected to be a new architectural wonder and a world landmark tower attracting tourists and being as important as the Burj Khalifa. Construction work on the project is expected to begin in a few months time, according to the latest news.
Emaar Properties is currently engaged in building a 6 sq. km mega-development along the Dubai Creek, the Dubai Creek Harbour, which it says will be three times the size of Downtown Dubai. The new tower will be linked to a central island district within the Dubai Creek Harbour district, which is being jointly developed by Emaar Properties and Dubai Holding. It is expected also to have a number of residential and commercial buildings set around a 4.5km creek boardwalk offering retail, dining and entertainment units.
The real estate boom and the new projects being approved are a real opportunities to local and foreign suppliers. Many commentators and the latest market figures confirm key industrial segments like the home furnishings market share, are registering an increase in current value by 6% in the last two years with a huge benefit from the boom in the real estate market.
Sitting furniture recorded the strongest growth in home furnishings, rising in current value terms by 11%, as showed by major industry reports last year. The overall home furnishings growth forecast confirms a value sales rise at a CAGR (Compound Annual Growth Rate) of 3% at constant 2014 prices, over the forecast period to 2019.