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The rise of luxury housing

Night Illumination At Dubai Marina. It Is An Artificial Canal Ci

Luxury accommodations in the UAE has grown a lot in the last seven years, proving once again the peculiarity of the UAE real estate market, states a recent Cost Of Living Reports study.

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From 2011 to 2014 the luxury property supply increased by nine per cent while the regular property supply decreased by four per cent, which definitely shows the focus of the UAE market on luxury real estate rather than regular properties.

These figures along with the current economic trend might suggest that the inflationary climate the UAE is facing, with the rise of prices in different sectors, might be related to the rise of prices for luxury housing in the country.

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In Dubai, from 2011 to 2014, the average rent for a two-bedroom apartment has increased in average by AED40,000 in Downtown Dubai and by AED30,000 in JBR. While in areas like International City or Tecom, the average rent only increased by AED15,000.

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However, after an increase in Q1 and Q2 of this year, luxury properties’ rents decreased in Q3; this decrease follows the new rent cap regulations put in place by the UAE government.

“The UAE continues to witness positive investor sentiment, driven primarily by the quality of infrastructure, strong economic growth, reliable regulation and a maturing real estate market,” says Alex Craine, head of consultancy division at CBRE MENA.

With a large number of luxurious projects announced at Cityscape, such as The Palm Getaway and The Meydan Avenue, and with the emirate gearing up for the Expo 2020, the real estate market should remain stable for the coming years.

 

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