Property transactions in the UAE are expected to increase this year, while rental prices in the residential market in Dubai are set to bottom out, according to Jones Lang LaSalle.
"For good quality or prime residential [rents in Dubai] we believe that the market is very close to the bottom and by the end of this year we'll be at the position that we'll start to see some recovery as a whole sector in 2013," said Craig Plumb, the head of research at Jones Lang LaSalle MENA.
The property brokerage says that there will be greater variance in rental price trends this year, with rents for homes in some developments staying stable, while prices for others are falling and a few are increasing.
For example, even within the same district, such as Dubai Marina, there are already diverging rental patterns, with rents for some buildings declining, while others are increasing, JLL said.
Sales activity is also likely to pick up, according to the brokerage.
"With increasing investor interest in the UAE market, a higher volume of transactions are expected in 2012, with this growth being driven by private investors and high net worth individuals rather than investment institutions," JLL highlighted in a report it released today.
"We think we will see increased activity in this sector as more confidence returns to the residential sector, perhaps with the UAE continuing to be a beneficiary of the Arab Spring as a relative safe haven, and as more projects get completed and handed over," said Alan Robertson, the chief executive of Jones Lang LaSalle MENA.
But there remain risks.
"There's also one potential new factor that could come along and that's Iran," said Mr Robertson.
JLL's predictions are based on the assumption that it does not escalate into a major armed conflict or closure of the Strait of Hormuz, he said.
rbundhun@thenational.ae
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
