‘Flight to quality’ trend in Dubai raises mid-range property prices
Property prices and rental rates in Dubai for mid-range quality units in desirable locations have…
December 22, 2009 2:36 by kippreport
Property prices and rental rates in Dubai for mid-range quality units in desirable locations have risen over the past three months, according to a report by Landmark Advisory published on Tuesday.
“The ‘flight to quality’ trend, witnessed in Dubai over the past six to nine months, continues to be driven by value-conscious middle-income end-users and families focused especially on value and size,” Jesse Downs, Director of Research and Advisory Services at Landmark Advisory said in its ‘Sales and Leasing guide for the Dubai market’.
“The flight to quality trend continues across Dubai, with lower-limit rents for high-end units in Downtown Burj Dubai increasing 13 percent. However, lower quality units have failed to show similar rent growth, while some areas continue to decline. An example of declining rents can be found in the Country Cluster units within International City, where lower-limit rents fell 12 percent,” Downs said.
“However, for both villas and apartments, we have noticed that sale prices dip around the time of handover,” Downs added.
“This is usually due to owners grappling with their final payment obligations, while also readjusting unrealistic price expectations. In addition, buyers can then benchmark new units against other completed developments.”