Dubai: Reminiscing Real Estate
Source: REIDIN , Author: Posted by BI-ME staff
Posted: Wed January 30, 2019 5:35 pm

UAE. The real estate market cycle has shattered the myths of current location having a large impact on price performance, as the dominant narrative of luxury property bearing the brunt of the price correction has overshadowed locational factors such as as golf course views and/or skyscraper advantages.

Price Change: Super Tall vs Dubai Marina (2012 vs 2018)

Source: REIDIN

The above graph illustrates the price change of buildings in the Tallest Block versus the general Dubai Marina from 2012 to 2018. As is clear from the chart above, there is no clear trend of outperformance; instead there appears to be a greater weightage attributable to the design of the building, rather than the height. In many cases, there has been a clear trend of under performance, belittling the axiom that it is profitable to invest in skyscrapers.

Using data from Arabian Ranches La collection, reveals that villas with a golf course view have underperformed their no-view counterparts over a 6 year horizon.

The same is true for real estate developer equity performance, especially as they resort to direct lending, raising concerns of default rates.

We opine that as the market continues to mature and head towards the world expo event, locational advantages will recede as new communities continue to proliferate at the luxury end.

Click here to read the original article on the REIDIN website

Photo Caption: For illustrative purposes only (File photo)

About REIDIN
REIDIN is the leading real estate information company focusing on emerging markets. REIDIN offers intelligent and user-friendly online information solutions helping professionals access relevant data and information in a timely and cost effective basis.

For more information, pleased visit www.reidin.com

 

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: February 15, 2019
UAE. Digital transformation requires successful orchestration of technology across the organization and there is nobody better suited to lead this than the CIO, explains Paul Potgieter, Managing Director - UAE, Dimension Data.
date:Posted: February 13, 2019
SAUDI ARABIA. OBG Business Barometer -KSA CEO Survey 2019: Results suggest that reforms and changing demographics are bringing new dynamism.
date:Posted: February 13, 2019
UAE. Presidents, Prime Ministers, business leaders, philanthropists gather in Dubai to map-out sustainable future for citizens; Africa can realize its full potential if it becomes a united continent, says Rwanda President Paul Kagame.
UAE. Digital transformation requires successful orchestration of technology across the organization and there is nobody better suited to lead this than the CIO, explains Paul Potgieter, Managing Director - UAE, Dimension Data.
dhgate