{"id":35044,"date":"2016-11-20T17:55:54","date_gmt":"2016-11-20T10:55:54","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/demand-for-dubai-luxury-property-dips-recovery-not-expected-until-2017-says-cluttons\/"},"modified":"2016-11-20T21:49:13","modified_gmt":"2016-11-20T14:49:13","slug":"demand-for-dubai-luxury-property-dips-recovery-not-expected-until-2017-says-cluttons","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/demand-for-dubai-luxury-property-dips-recovery-not-expected-until-2017-says-cluttons\/","title":{"rendered":"Demand for Dubai luxury property dips; recovery not expected until 2017, says Cluttons"},"content":{"rendered":"


\nThe market for luxury property in Dubai continues to weaken as the number of high-level jobs has declined, with prices for Burj Khalifa apartments 15 per cent lower year-on-year and prices at Palm Jumeirah falling by 12 per cent, according to Cluttons.The fall at the top end of the market is in contrast to the performance of mid-income housing units, the firm said, where prices in areas such as Motor City, Business Bay, Uptown Mirdif and even Emaar’s developments in Downtown Dubai are now flattening.”While Dubai’s economy is still diversified, it’s the senior level jobs that have been lost,” said Faisal Durrani, the head of research at Cluttons. “Also, the rate of [job] replacement and creation has slowed down. “Dubai serves as a regional centre for the export of financial and business services, and with austerity measures continuing to filter through, there is less and less demand for senior-level jobs and there is less merger and acquisition activity taking place in the region.”Overall prices across the city declined by 2.4 per cent in the three months to the end of September, meaning prices are 7.4 per cent lower year-on-year, and rents are 8 per cent lower, Cluttons said.Mr Durrani said that he expects prices will have dropped 10 per cent by year-end. Cluttons has said that it does not expect a recovery in Dubai’s property market until the end of 2017, when job creation rates are expected to be higher as a result of Expo 2020-led infrastructure work.”This is a very sentiment-driven market. Things like the opening of the Dubai Canal, construction commencing on Emaar’s The Tower and tenders imminently going to be out for Al Maktoum Airport … all of these things are helping to keep domestic sentiment quite high, which is encouraging.”A note of caution was sounded, however, about the potentially negative effect that increasing supply could have on the market. Almost 34,000 new units have been announced so far this year, with 30,000 of these being unveiled before and during the Cityscape Global conference in early September. Some 12,900 of these are being built by Nakheel to sit within its rental portfolio.Mr Durrani said that he expected the delivery of new units to be phased so that the market is not overburdened with excess supply. It expects 8,000 homes to be completed this year, 12,000 in 2017 and 20,000 in 2018.”We’re probably not going to see those big hits to the market as announcements generally suggest,” he said. “But things could change. If we see surges in supply, that will dampen the prospects of a return to stability.”Asteco Property Consultants also published its third-quarter report today which argued that prices have remained relatively stable. Although the number of transactions completed dropped by 24 per cent quarter-on-quarter, they were still 12 per cent higher year-on-year. The rental market has experienced a switch in demand towards cheaper communities, with villa rents in Jumeirah and Umm Suqeim falling by 19 per cent and 12 per cent respectively year-on-year, but increasing in Jumeirah Village Circle and Dubai Sports City. John Stevens, the managing director of Asteco, said that with the supply pipeline increasing and off-plan launches generally offering much cheaper units, “there seems to be little potential for both rental and sales price growth, except within select developments”.mfahy@thenational.ae\u00a0Follow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Demand for Dubai luxury property dips; recovery not expected until 2017, says Cluttons<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The market for luxury property in Dubai continues to weaken as the number of high-level...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-35044","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-97e","jetpack-related-posts":[{"id":11436,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-rents-fall-fastest-in-prime-areas-as-jobs-market-weakens\/","url_meta":{"origin":35044,"position":0},"title":"Dubai rents fall fastest in prime areas as jobs market weakens","date":"April 27, 2016","format":false,"excerpt":"\r Dubai rents could fall by as much as 5 per cent this year, with the biggest drops in prime areas including Dubai Marina and Palm Jumeirah, according to Cluttons. The consultancy said that rents in prime areas are likely to fall by up to 7 per cent, driven by\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35032,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/recovery-in-dubai-property-market-not-expected-until-late-2017-says-cluttons\/","url_meta":{"origin":35044,"position":1},"title":"Recovery in Dubai property market not expected until late 2017, says Cluttons","date":"November 20, 2016","format":false,"excerpt":"\r Prices in Dubai's residential market continued to fall during the third quarter of 2016, dropping by a further 2.6 per cent, according to a new report by Cluttons.The firm's Winter 2016\/17 Property Market Outlook said residential prices reman 7.4 per cent lower year-on-year, and are 26.7 per cent below\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14206,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-office-rents-face-summer-of-decline\/","url_meta":{"origin":35044,"position":2},"title":"Dubai office rents face summer of decline","date":"May 24, 2016","format":false,"excerpt":"\r Dubai's office market faces a \"challenging\" outlook, with further rental declines likely to come over the summer months after a period of relative stability, says the property consultant Cluttons. The company said that although rents held in some of Dubai's prime free zones, such as DIFC and Dubai Media\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35212,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-property-prices-widely-expected-to-rise-in-2017\/","url_meta":{"origin":35044,"position":3},"title":"Dubai property prices widely expected to rise in 2017","date":"November 21, 2016","format":false,"excerpt":"\r Brokers and analysts are certain that Dubai residential house prices will rise next year but disagree over the speed of the property market's recovery. Two reports yesterday by JLL and dubizzle and by Core Savills are forecasting that Dubai's property market will recover much faster than the end of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35214,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-property-prices-to-rise-in-2017-but-how-quickly\/","url_meta":{"origin":35044,"position":4},"title":"Dubai property prices to rise in 2017, but how quickly?","date":"November 21, 2016","format":false,"excerpt":"\r Brokers and analysts are certain that Dubai residential house prices will rise next year but disagree over the speed of the property market's recovery. Two reports yesterday by JLL and dubizzle and by Core Savills are forecasting that Dubai's property market will recover much faster than the end of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12658,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sharjah-rents-fall-8-and-decline-set-to-continue-in-line-with-dubai\/","url_meta":{"origin":35044,"position":5},"title":"Sharjah rents fall 8% and decline set to continue in line with Dubai","date":"May 11, 2016","format":false,"excerpt":"\r Rents in Sharjah as set to continue dropping in 2016 after experiencing an 8.3 per cent year-on-year fall in the first quarter of 2016, according to Cluttons. The property consultancy said rents over the three-month period dropped by 5.7 per cent, fuelled mainly by rapidly-declining villa rents. Average villa\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/35044"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=35044"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/35044\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=35044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=35044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=35044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}