Tag Archives: costs

Delays aid Dubai rents keep flat in 2015 sales costs drop

DUBAI Dec 14 The delayed handover of about 6,000 houses in Dubai has helped rents remain flat so far in 2015 even though residential sales prices have fallen a lot more than 10 percent, sector consultants CBRE stated on Monday.

Dubai’s genuine estate sector has stuttered this year following a rebound close to the peak values of the previous decade as a sturdy regional currency produced getting house much more pricey for foreign investors.

Overall, Dubai apartment and house sales prices on average fell 16 and 14 percent respectively in the first 11 months of 2015, CBRE estimated, forecasting additional declines in sale costs subsequent year.

Apartment rents were flat over the exact same period, although property rents dipped four percent, CBRE mentioned.

“The (rental) market has held up quite effectively but it does not inform the complete story,” mentioned Mat Green, UAE head of research at CBRE Middle East. “We have a really fragmented industry.”

He stated rental values in the city’s a lot more expensive districts such as Palm Jumeirah and Dubai Marina had fallen even though more affordable, peripheral places have noticed costs rise in 2015.

CBRE had forecast 20,000 units would be handed more than in 2015, but only about 14,000 will be delivered by the end of the year due to late payments by investors, issues in acquiring completion certificates and some developers opting against releasing units. Sales contracts allow for some delays.

“These who have some flexibility in their delivery pipelines will stall their delivery until rental or capital values of those units give much better returns,” said Nicholas Maclean, managing director of CBRE Middle East.

“Delivering they do not have a commitment to deliver these units, it is a sensible way of performing improvement. A essential weakness of some developments in Dubai in the last ten years or so was the lack of phasing in deliveries.”

CBRE estimates Dubai’s residential sector can absorb 20,000 new units each year just before vacancy rates increase.

“You’re seeing a a lot more pronounced influence this year, but there is usually going to be some slippage,” said Green.

He forecast sale rates would decline by about ten % in 2016, even though performances would differ markedly by district.

“Sales are driven by sentiment, outside influences, the currency circumstance, so you’ve a lot of external fundamentals influencing the investment selection, it’s not simple to forecast,” stated Green.

The UAE dirham is pegged to the dollar, which this year is up 9.2 percent versus the euro, six.6 percent against India’s rupee and two.eight % higher against the British pound. (Editing by David Clarke)

UK property costs to rise four-six pct in 2016 – Halifax

LONDON Dec 4 British residence cost are probably to rise much more gradually next year, with costs growing by among four and six % compared with growth of nearly 10 % in the previous 12 months, mortgage lender Halifax forecast on Friday.

Final year, Halifax mentioned house rates would rise by 3-5 % in 2015. But their own figures have shown development of more than twice that in the year to October.

“Property rates look costly compared to incomes but valuations are supported by the low levels of house for sale, low levels of housebuilding, and exceptionally low interest rates,” Halifax housing economist Martin Ellis said.

The failure of the Bank of England to increase interest prices, as markets had anticipated this year, was a important reason why house costs had risen more rapidly than forecast, Ellis added.

Other information show a slower price of improve than Halifax’s numbers. The Workplace for National Statistics has reported a six.1 % rise for the year to September.

Economists polled by Reuters final week predicted on typical that residence rates would rise by 4.three percent next year and 3.9 % in 2017.

Bank of England chief economist Andy Haldane final month named the British housing industry “broken”, blaming a lengthy-term failure of building to maintain up with demand.

Final year, the BoE restricted high loan-to-earnings mortgages for residential purchases. It is seeking now at no matter whether to advise curbs on ‘buy-to-let’ mortgages favoured by small property investors.

But the central bank has stopped brief of deeming the cost rises a significant threat to monetary stability.

Halifax is element of Lloyds Banking Group and is one particular of Britain’s biggest mortgage providers. (Reporting by David Milliken editing by William Schomberg)