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Dubai property sales down by 24% in third quarter of 2016



Residential property sales in Dubai fell by 24% in the third quarter of 2016 compared to the previous quarter and prices and rents were all down slightly, the latest data shows.
Villa and apartment prices both fell by 1% and rents were also down 1% quarter on quarter, according the Dubai residential report from international real estate firm Chestertons.
There were AED 3.45 billion worth of residential sales during the period with Dubai Marina the most popular area of the emirate with sales worth AED 654 million.

Apartments in Business Bay, Discovery Gardens, International City and The Views recorded the greatest drop in prices while prices in Dubai Motor City, JLT and Remraam remained unchanged. High end properties on the Palm, those over AED 2,200 per square foot were the only villas from the sample measured to hold their value.

‘Dubai Marina will always be an attractive location for investors with consistently high levels of yields,’ said Robin Teh, United Arab Emirates manager for valuations and advisory at Chestertons MENA.

‘The highest transaction values remained in the prime areas such as Emirates Living, Palm Jumeirah and Downtown Dubai. However, as investors bide their time on the bottoming of the Dubai market, total transaction volume and values dropped in the last quarter, compounded by the traditional lull in activity due to the summer and holiday season,’ he explained, adding that he expects prices to remain at stable levels leading up to the end of 2016.

It was a similar story in the rental market, with a 1% decline in both apartments and villas across all unit types. Average one bedroom apartments in Remraam fell to AED 57,000 per annum. However, two bedroom apartments in select locations saw drops of up to 2% such as Downtown Dubai, JLT and the Greens. The average rents for three bedroom apartments in DIFC, Downtown Dubai and Dubai Marina remained the same in all cases.

In terms of villas, Arabian Ranches saw the greatest drop, with an average four bedroom now renting at AED 245,000 per annum. While villas on the Palm, JVT and The Springs remained consistent quarter on quarter.

‘Demand remains relatively stable, with tenants having more negotiating power in the current market. Job losses and lower spending capacity have placed pressure on rates in the second and third quarter of 2016,’ Teh said.

He also pointed out that despite the relatively flat performance for the emirate during the third quarter, gross yields across all areas of Dubai remained stable, both the apartments and villas segments. ‘Apartment gross yields are between 6% and 8%, while mid-market communities International City and Discovery Gardens’ gross yields reach 9% and 10% respectively,’ Teh explained.

‘Villa gross yields are still in the range of 4% to 6% with gross yields in prime areas such as Palm Jumeirah and Jumeirah Islands standing at approximately at a more modest 3%,’ he added.
In the office market, total transactions decreased by 20% to AED389 million. Volumes of sale transactions values in the third quarter also fell by approximately 24% compared to the previous quarter, with the majority of sale transactions in Business Bay followed by JLT.

Source : Property Wire

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Soilbuild Group Holdings Ltd. Streamlines Operations with Yardi Voyager



Soilbuild Group Holdings Ltd. Streamlines Operations with Yardi Voyager

Integrated property group will manage nearly 4 million lettable square feet with a single connected solution.


Soilbuild Group Holdings Ltd. will adopt Yardi Voyager, a cloud-based, mobile-enabled property management and accounting platform.

Additional products from the Yardi Commercial Suite will automate the measurement of Soilbuild’s financial health, enable precise cost and budget oversight of development projects, deliver portfolio-wide business intelligence and shorten the leasing life cycle.
“Voyager and the Commercial Suite will strengthen us as we undertake the next stage of our business’ growth. Faster access to higher-quality business information will enable decision-making that drives better returns,” said Lim Han Qin director of Soilbuild Group Holdings Ltd.

“Yardi is pleased to welcome Soilbuild Group as another client in Singapore. The company’s new products will replace disparate, outdated systems with a single source of truth and help Soilbuild provide better service to its investors,” said Neal Gemassmer, vice president of international for Yardi.

About Soilbuild Group Holdings Ltd.

Soilbuild Group Holdings Ltd. of Singapore is a leading integrated property group with a successful track record of constructing, developing and managing an award-winning portfolio of residential and business space properties. Soilbuild manages close to 4 million square feet of business space for lease.

About Yardi
Yardi develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide from offices in Asia, Australia, the Middle East, Europe and North America.

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London House Prices Fall For The First Time Since 2009



According to a data shown on Thursday, the average price of a home in London dropped in 2017 for the first time in eight years on fallout from Brexit.

According to the mortgage lender Nationwide’s calculations, the prices were up throughout the country, they were down in London for the first time since 2009.

While the overall last year UK house prices rose by 2.6 percent it was slower than the 4.5 percent seen the previous year reported the Nationwide. Nationwide’s monthly survey is closely followed by markets.

Nationwide chief economist Robert Gardner said, London saw a particularly marked slowdown, with prices falling in annual terms for the first time in eight years, albeit by a modest 0.5 percent.”

Since 2004 London was the UK’s worst-performing region for the first time. Gardner noted, “How the housing market performs in 2018 will be determined in large part by developments in the wider economy.”

He further added, “Brexit developments will remain important, though these remain hard to foresee.”

In June 2016, since Britain voted to leave the European Union it has pushed inflation up to more than 3.0 percent making imported goods more expensive.

According to Gardner in 2017 low mortgage rates and healthy employment growth continued to support demand for housing. He said, “However, this was offset by mounting pressure on household incomes, which exerted an increasing drag on consumer confidence as the year progressed.”

Since 1975 while UK unemployment is at the lowest level, wages are not keeping pace with inflation. In March 2019 Britain remains on course to exit the EU.

Also Read: New York Real Estate Hits The Worst Quarter In Six Years

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New York Real Estate Hits The Worst Quarter In Six Years



New York Real Estate

The fourth quarter of the year brought a fall for the sales and prices in the Manhattan real estate. According to the predictions, they are likely to slide even further this year after the new tax rules take effect.

There was a fall of 12 percent in the total sales volume in comparison with the fourth quarter of the last year, termed as the lowest quarterly level in six years. For the first time in two years, the average sales price in Manhattan fell below $2 million. It happened due to the clearing out of the pipeline of legacy contracts, which often came from the new luxury development. But the third quarter saw consecutive increment in the median sales price, driven by re-sales, to $1.06 million. All throughout the quarter, smaller apartments attracted more bidding than larger apartments, impressively 90 percent of these highest-priced sales (at or above $5 million) were all cash transactions.

The declines are being assumed as the result of the confusion by the Republican tax plan, as buyers opted to hold off until the details of the new law came out clear. Many of them are now opting in, finally letting the show gaining a rebound.

According to the analysts the rebounding of sales in the first quarter of 2018, limiting the deductibility of state and local taxes, will continue to add pressure to New York City housing prices. Whereas the luxury market in Manhattan is seeing a saturation in high-end and highly priced apartments. The full impact on prices and sales might take up to a year and a half to two years, for a complete realisation.

The inventory of luxury apartments is shooting up in the Manhattan market, a 15 percent price growth came upon, those in the top 10 percent. The 10-month supply of luxury apartments in Manhattan from a year ago, have now rose to 17 months. These numbers are likely to grow as the city is seeing giant new condo towers sprouting in its every corner.

New developments are expected to rise continuously from this year to next, eventually adding to the inventory. As the demand for “low-end” apartments priced at $1 million to $2 million are displaying strength, the sales of apartments of more than $5 million are up for tougher roads. This trends owes to the discretion of the rich, specifically on their choice of time and location of buying homes. The majority of the apartments that are speculated to take the biggest hits are the one aimed at the riches, as the costs of owning a home in New York is going up with the tax plans. The sellers have to adjust again, after their recalibrations in 2015, as the buyers have already settled.

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