7th October 2013

 

On Sunday 6th October 2013 the Dubai Land Department increased the property transfer fees from 2% to 4% as part of its strategy to prevent prices from escalating too quickly and potentially creating another bubble in the Dubai real estate market. When the news broke a couple of weeks before, the buyers and sellers with sales in process rushed to developers like Nakheel and Emaar in attempt to push through the NOCs (No Objection Certificates) and complete the sales transaction before the new fees came into effect.

 

Jumeirah Park has seen some of the fastest price rises for villas in Dubai since the start of 2012. At the time the villas were massively undervalued 18 - 24 months ago in comparison to completed villas in similar communities such as The Meadows, Lakes and Arabian Ranches. Investors who saw the potential and bought during 2012 have seen capital gains anywhere in the range of 30 - 100%. The increase in the transfer fee is likely to have some impact in the short-term, as buyers will have to re-calculate their fees to help with their rental yield and future capital gains estimates. Prices in Jumeirah Park might settle or grow at a slower rate for a short period, but the long-term economic fundamentals for Dubai are still positive and real prices are likely to continue upwards for now.

 

Buyers should always remember that long-term the location is always a key factor wherever you buy in the world. Jumeirah Park is located right next to Sheikh Zayed Road and one of the last freehold villa communities to be developed in such a prime area. Jumeirah Lake Towers is becoming increasingly popular as a business hub with the commercial towers filling up fast and new trade licenses being issued regularly by the DMCC. Business owners, directors and managers in JLT often like to live within a short and easy driving distance to their workplace, which is on offer by living in the Jumeirah Park community.

 

Property Boutique has a range of Jumeirah Park villas for sale, please contact us with your sales or purchase requirements.