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By Sunil Kumar Singh
April 4, 2016 | 14:45 | Dubai
Playing down talks around the much hyped UAE property market ‘slowdown’, the head of a Dubai-based property services company believes the market is instead correcting. “Contrary to what many say, I believe Dubai property market is not slowing down. Rather it’s just a correction of rates and a rebalancing between demand and supply. There’s a pretty fresh supply coming into the market, which in many cases is outstripping the demand,” Ismail Al Hammadi, Managing Director, Al Ruwad Real Estate, Dubai, told Wealth Monitor.
While residential sales in Dubai last year recorded across-the-board declines, with villa sales prices down year-on-year by 11% and apartments by 8%, in Abu Dhabi saw apartment rental rates increase, on average, by 5%, with prime projects achieving up to 10% growth, and 3-4% growth for apartment sales prices, as per Asteco figures.
“Whatever therefore is happening in the market, we shouldn’t be scared of as this is a normal and healthy development,” Al Hammadi added.
“Despite the correction, Dubai property market is still giving the average yield of 7% yield on both sales and leasing side, which is higher than many other property hotspots around the world.” Al Ruwad Real Estate provides property related services ranging from project planning, real estate consultancy, property management to property buying and selling, leasing and brokerage.
Read the full text of the interview at: http://bit.ly/1ZYuu3b