Landmark Advisory releases ‘Market Snapshop’; reveals key trends in residential sales across Dubai and Abu Dhabi moving into Q4
Landmark Properties’ research and analysis division continues to witness a solid rise in residential sales across Dubai, while Abu Dhabi observes a negative effect on assets
Dubai, United Arab Emirates – 15 August 2011: As Landmark Advisory predicted, there has been a solid rise in interest in residential sales across Dubai in certain established and prime residential areas such as Downtown Dubai and Emirates Living (Lakes, and Meadows). Moreover, over the past 12 months, the astute research and analysis division of Landmark Properties have observed three distinct submarkets emerging within Dubai’s residential market; prime, secondary and tertiary.
Michael Michael, Director of Landmark Properties explains, “Based on transactional data and third-party research, capital values continue to decline in tertiary areas with an imbalance between supply and demand. Markets such as Discovery Gardens and International City have witnessed the largest decline, while prime locations such as Downtown Dubai have witnessed the least”. According to Michael, the reason prime markets have performed so well is predominately due to minimal supply.
Across Dubai, apartment sales have declined by 2%, and, as Landmark Advisory expected, villas have continued to perform well due to the lack of forthcoming supply in 2011 – the result transpiring to a quarter on quarter increase of 2.8%. Commercially, the office market in Dubai remains oversupplied – with the current supply at 5.2m sq ft and another 2million sq ft to be delivered by 2014. To date, as market conditions continue to favour tenants with landlords’ willingness to provide incentives, capital values have observed a 1.7% drop.
Abu Dhabi’s real estate market continues to evolve as handovers take place in Marina Square and Sowwah Square. However, Landmark Advisory has noted that Dubai continues to have a negative effect on the Emirate’s assets. Michael states, ‘A decline of 3% has been witnessed across Abu Dhabi’s apartment rents as Dubai still plays its damming part”. He confirms capital values have declined slightly – 2% – even though few transactions have taken place. Therefore, it is predicted that over the next 12 months people will be drawn back from Dubai as rent prices and values continue to fall.
In regards to Abu Dhabi’s commercial market, Landmark Advisory has witnessed a decline of 4.2% in Grade A rents, with this decline expected to continue as more supply comes to the market. Michael finishes, ‘We predict that another 850,000sq m will be delivered over the next two years”.
About Landmark Properties:
Landmark Properties (LM) is jointly owned by a unique and dynamic group of experienced entrepreneurs with diverse backgrounds in investment banking, real estate development, marketing and Media Production. The company has a strategic alliance with Amlak Finance and Deyaar.
Landmark Properties was created with one goal in mind: to strive to present a standard of real estate services yet to be offered in Dubai through our unsurpassed customer service and state of the art technology. LMP boasts a multi-national group of Sales Executives, experienced within their specific fields, providing concentrated attention to individual sectors of the business.
Landmark Properties offers a professional, efficient service, dealing with all aspects of real estate and catering to the needs of both the individual and corporate client, specializing in:
• Residential Leasing
• Commercial Leasing
• Freehold Property Sales
• Local(GCC) Property Sales
• Exclusive Project Marketing
• Property Management & Consultancy
• International Sales
About Landmark Advisory
In 2006, Landmark Properties established a new division, Landmark Advisory, with a mandate to provide superior advisory services in the real estate within the UAE. Since then, Landmark Advisory has built up an extensive client base which includes a mixture of governmental organisations, private institutions, GCC and international based funds, developers, investment companies and high net worth individuals. Our principle services include; Market Research / Advisory, Development Advisory, Investment Advisory and Valuation.
In 2009, the valuation department was created to assist clients in valuing residential, office, leisure / hotel and industrial property. This service has proved a resounding success and we now act for banks, investors, developers and an array of owner occupiers throughout the UAE.
Since conception, Landmark Advisory has expanded rapidly and is now widely regarded as the leading advisory company in the UAE. Our consistently high quality of work both privately and publically has gained wide recognition and as a result we have now cemented an edge over our international competitors.
Working alongside our brokerage division we have unparalleled access to specialised data about the market dynamics that affect both sides of the buy and sell equation. In addition, our real-time transactional database provides a direct view of the current market cycle, allowing us to put your project into context.