Dubai Property Market
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Dubai property developers offer new financial incentives through innovative co-living and co-working concepts for tenants


Dubai’s residential property investors are targeting a new buyer and tenant segment by offering innovative co-living and licensed co-working concepts, according to leading international real estate services firm, Chestertons.

In the sales market, the downward pressure on prices witnessed throughout 2018 has continued into Q1 2019 with villa and apartment prices down 1% and 4% respectively.

The most flexible communities, from an apartment perspective, were Downtown, Dubailand, Dubai Motor City and Dubai Silicon Oasis, all retaining the same price levels as the previous quarter, at Dh1,511 per sqft, Dh722 per sqft, Dh713 per sqft and Dh703 per sqft respectively.

International City, Dubai Sports City and Business Bay experienced the highest correction with a quarter-on-quarter decrease of 7% with prices dropping to Dh481 per sqft, Dh737 per sqft and Dh1,038 per sqft respectively.

The Views and Discovery Gardens remained comparatively competitive with only a 1% decrease compared to Q4 2018 with prices at Dh1,197 per sqft and Dh627 per sqft respectively.

With regards to villas, the most resilient community was The Lakes with prices unchanged from Q4 holding firm at Dh1,107 per sqft. In contrast to the previous quarter, The Meadows and Springs witnessed the highest declines, revealing a 4% decrease with prices dropping to Dh897 per sqft, said the report.

Jumeirah Park had a slight decline of 1% in Q1 2019 whilst Palm Jumeirah and Arabian Ranches both saw declines of 2% during the same period, it added.

To remain competitive and open up the market to a new segment of buyers, several developers are now offering a variety of innovative living solutions, allowing residents to live and work in the same space, she stated.

Another key strategy to increase investor interest and absorption rates is the introduction of rent-to-own (RTO) schemes.

These schemes offset the need for a large cash deposit and would appeal to buyers who don’t have the 25% down payment or are unsure of future market trends. RTO deals can currently be found in areas such as Jumeirah Village Circle, Palm Jumeirah and Dubai Sports City.

“Due to the supply/demand dynamics, we’ve seen several landlords offering lower rental rates and incentives to attract and retain tenants. Multiple rent cheques, rent-free periods, waiver of security deposits and in some instances the landlord covering the cost of agency fees are all becoming increasingly more common,” remarked Vucinic.

“We are also seeing an increase in Airbnb style rentals in the market with increasing occupancy rates year-on-year. This could be a result of ongoing downward corrections in the long term rental market,” she stated.

“These types of properties are preferable for individuals working in the emirate on a project basis or who are within their probation period, as they are unable to commit to traditional annual rental contracts as the tenancy cannot be registered if the residency visa is still to be granted,” she added.-TradeArabia News Service

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