Dubai and Abu Dhabi rental yields may indicate overheating, says UAE Central Bank

Dubai and Abu Dhabi rental yields may indicate overheating, says UAE Central Bank Reuters June 8, 2014 Updated: June 8, 2014 11:13:00 Residential rental yields in Dubai and Abu Dhabi could indicate growing imbalances and overheating in the country’s property sector, the UAE central bank said on Sunday. Related Photos In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014 Photos In pictures: Where Dubai rents have risen and fallen, Q1 2014 ■ Dubai rent rises ‘unsustainable’ as first quarter figures revealed ■ Abu Dhabi rent increase rules differ from those in Dubai Comment Dubai’s rent rises should be gentle Topic Central Bank of the UAE, Rent “Current average rental yields in Dubai and Abu Dhabi are approximately 70 and 130 basis points below historical averages, which could indicate growing imbalances - overheating real estate market,” it said in a financial stability report. “Monitoring development in the UAE real estate markets and the banks’ exposure to it remains a core financial stability priority,” it added. More to follow. Read more: http://www.thenational.ae/business/industry-insights/property/dubai-and-abu-dhabi-rental-yields-may-indicate-overheating-says-uae-central-bank#ixzz342Z9ueFv Follow us: @TheNationalUAE on Twitter | thenational.ae on Facebook =========================== Damac brings forward launch of first Akoya Drive units in Dubai Ian Oxborrow June 8, 2014 Updated: June 8, 2014 12:37:00 Damac says it has brought forward the launch of the first units on its Akoya Drive project in Dubai having been “inundated” by investors. Related ■ UAE’s first outdoor ice skating rink planned for Akoya Drive in Dubai ■ Damac profits boosted by plot sales at Akoya golf course project in Dubai Photos In pictures: The Walk at JBR to get a fresher look ■ Dubai is ready for a ‘smarter’ boom this time around Photos In pictures: Living the high life at Damac Maison tower in Dubai Topic Damac Properties The developer last week unveiled plans for the 1.3km shopping strip - complete with the UAE’s first outdoor ‘ice’ skating rink - echoing the likes of Rodeo Drive in Beverly Hills and The Walk at Jumeirah Beach Residence. And because of the response, it is making available units at the scheme’s first hotel, NAIA by Damac, which will feature both luxury rooms and hotel apartments.

“Since announcing the concept, we have been inundated with investors wanting to be part of Akoya Drive,” said Niall McLoughlin, the senior vice president, Damac Properties. “Given the heightened interest in the development, and Akoya by Damac as a whole, we have decided to bring forward sales on the first phase of the Akoya Drive project.”

Prices start at Dh680,000, and the project is expected to be completed during the first quarter of 2018. The 28-storey NAIA Hotel has 500 units, which will provide a 40 per cent share in room revenue to owners, according to Damac. The units come with title deed and 14 free nights stay per year. A second building will house the NAIA Hotel Apartments, which Damac says will “offer investors the option of a rental pool for all units to benefit from living in and earning returns when checking”. Akoya Drive is part of Damac’s 42 million square foot Donald Trump-designed golf course-led development off Umm Suqeim Road. “Akoya Drive is going to create a thriving hub where home and entertainment combine with the quality serviced living in the best golf development in the world,” said Mr McLoughlin. ioxborrow@thenational.ae Follow us on Twitter @Ind_Insights Read more: http://www.thenational.ae/business/industry-insights/property/damac-brings-forward-launch-of-first-akoya-drive-units-in-dubai#ixzz342hZ31Uv Follow us: @TheNationalUAE on Twitter | thenational.ae on Facebook ===========================================