Completed buildings in Dubai attract more value in Q2 2010
The value of completed buildings in Dubai witnessed a major spike in prices by more than 45 percent during the second quarter of 2010, in comparison to that of first quarter this year, based on the statistics published by the Dubai Statistics Center of Dubai Municipality.
This indicates an all-time quarterly high for the value of completed buildings, as per the Dubai Municipality data, which has been maintaining records dating back to the year 2005.
The increase in value of completed buildings is largely due to the 80 percent jump in value of multi-storey buildings completed in Q2 this year. However, the number of multi-storey buildings that have been completed grew only marginally, touching 87 buildings from 82 buildings during first quarter of the year.
The rise in building values is noteworthy particularly bearing in mind the fact that there has been a 17percent drop in the number of completed buildings (from 1358 in Q1 2010 to 1128 in Q2 2010).
The value of completed buildings in Dubai had hit a low during fourth quarter last year, with 614 buildings worth Dh.4.3bn completed. But, thereafter, the value of completed buildings has recorded a good improvement, jumping by more than 76 in Q1 and by more than 45 percent in Q2 of this year.
The latest announcement by Dubai World that it has reached a deal with 99 percent of its creditors regarding $24.9bn worth debt re-structuring is likely to further boost the real estate sector in the emirate, which witnessed a decline in value by 50 percent on delivered properties during the past couple of years, owing to global economic recession.
According to experts, the government supporting this major sector and real estate companies are set to make a major comeback earlier than expected.
The value of buildings, public facilities, particularly those funded by government bodies, including the municipality, grew by more than 67 percent from Dh.1.74bn in Q1 2010 to Dh.2.9bn in Q2 2010, as per data.