The very first signs and symptoms of stabilizing that been found in 2010 in Dubai villas prices for the places that demand was going in tandem with the supply. A similar positive movement has been seen in the pursuing three quarters of 2011. In the meanwhile, there only some places where the Dubai apartments are showing certain price recovery in 2010 but regrettably this movement was not able to sustain in 2011.
Dubai Apartments vs Dubai Villas
Based on a latest real estate and property report, the sales of Dubai apartment has been reduced to 2% in 2011 up to now while at the same time the prices for Dubai villas have demostrated an uptrend with quarter to quarter price is steadily raise at 2.8%. Due to prices of villas have received a positive increment and this is sufficient to counterbalance the downfall in the sales of Dubai apartments and can even further providing additional support to the entire demand of property an real estate sector in Dubai.
From the results of Emaar reports that were released recently, we can see that the performance of apartment sales in second quarter is dropped by 85% whilst it is still getting a substantial increase in sales of villas and commercial buildings.
For people who has monitored for Dubai property and real estate for quite sometime might be wondering of how is the status of the industry over there and when can the region going to have full recovery in the property market again. The current sign showing that the sales of Dubai villas have done well in 2011 and you might want to know the reason behind that boost the market with current unfavorable trend. Well, these were happened and we can categorized them into two different reasons:
2 Reasons For Sales of Dubai Villas Uplift
1. After the crash of Dubai real estate market, most properties are selling at bargain and these have triggered the interest of investors to invest again in Dubai residential property. The ever increase of property sales are actually focus on certain famous areas. Those areas were once only can be a dream for middle class people to buy but after the price was went down quite a lot, most middle class people are now able to afford. The famous areas are include the villas of Down town Dubai, Meadows and Lakes. However the villas in Discovery Gardens and International City are not really doing well. The overall increased for the demand of Dubai villas is liable for the Dubai rental recovery as well as overall property market in Dubai.
2. Dubai government has ceased the projects for new construction of villas and cut short the supply. No additional villas are added in 2011 in addition to 217 project cancellations happen to have been taken place. The short supply of villa is managed to keep total supply consistent and help to boost the demand of Dubai villas. All of these efforts are with the purpose to make the property market in the region to become sustainability and steady.
Actually as of now nobody could really foresee the future property market in Dubai but based on the positive result in the three quarters in 2011, it is more likely that same trend will be followed in 4th quarter of 2011. Nevertheless, the lead of villas in sales performance is not really can said to be a good thing to uniform the stability of real estate market. Government should implement even more feasible ways to further improve the sales of apartments also so that people can see the recovery is actually happens in all areas.
