Trend attributable to increase in young home buyers, says developer Shaikhani Group
The latest sales trends in the Dubai residential housing market are indicating that smaller units are selling faster than larger homes, according to city-based developer Shaikhani Group.
“The real estate market is shifting towards the mid-market segment and towards smaller units – where the real demand is picking up,” said Mahmood Shaikhani, managing director of Shaikhani Group, in a statement highlighting the group’s offerings in the small and budget segment.
“As a developer, we have witnessed this shift for some time. That’s why we have been developing properties for the young, trendy and upwardly mobile small families and couples who do not need large premises to live, but a small, cozy and elegantly styled smaller family home,” he added.
“Since most buyers in Dubai are expatriates, they prefer to go in for smaller apartments, such as one- and two-bedroom units. It is increasingly evident that smaller units are more in demand in the Dubai property market.”
Pointing to the Dubai Property Review Q3 2016 report by real estate consultancy Asteco, the statement added that increasing pressure is being placed on landlords as budget conscious tenants continue to place emphasis on downgrading to smaller units or relocating to cheaper communities to get better value for money.
Apartments in Jumeirah Village Circle and Dubai Sports City saw rates increase by 2% and 3% respectively, the statement added. The latter also recorded the highest growth over the year, averaging 13% as demand for affordable housing increased.
In Dubai, nearly 34,000 residential units have been announced by developers so far this year, the statement added, and quoted real estate advisory firm Cluttons’ projection to reveal that the total number of completions this year is expected to be around 8,300 units, going up to 12,212 units in 2017 and 20,915 in 2018.
“Going forward, the real demand will only come from the real buyers, as we have seen that the gradual price adjustment has eliminated the speculators from the markets over the last two years. The market is now more real and there is a clarity in the direction it is heading towards,” Shaikhani said.
“Therefore, we are extending our arm to help new couples and families with attractive payment plans to move into their new homes as we start delivering new projects in the first quarter of 2017.”
The Shaikhani Group recently announced the launch of its Family Home concept, with units available for Dh799,000 in its latest project, the Gardenia Residency at Jumeirah Village Circle. The company’s statement said the units include a kid’s room within the one-bedroom apartment, effectively creating two bedrooms. The project will see the development of 59 studios, 89 one-bedroom apartments, five two-bedroom apartments, seven three-bedroom simplexes and seven duplexes, the statement added.
The company has a strong development pipeline with more than 2,100 apartments and office space worth Dh3.5 billion across 11 projects, the statement added. The projects will be located in Dubai Sports City, Jumeirah Village Circle and Dubai Silicon Oasis and will comprise both residential and commercial units. Of these, the company is in advanced stage of completion of Dh1.5 billion worth of projects involving 1,250 units, while the rest are expected to be completed by 2020. Four of these projects will be located in Jumeirah Village Circle while one will be in Arjan at Dubailand.