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Luxury developer DAMAC Properties has revealed the occupancy rate across its residential development portfolio in Dubai is well above average, and as high as 97% in some developments.
According to Global Investment House, the average residential occupancy rate in Dubai is about 70%. Comparatively, the occupancy rates of DAMAC Properties’ more established towers The Waves and ‘Marina Terrace’ in Dubai Marina are as high as 94% and 97% respectively.
More impressively, occupancy rates in the more recently handed over developments such as ‘Ocean Heights’ and ‘Emirates Gardens’ are 91% and 95% respectively.
DAMAC Properties extraordinarily high occupancy rates are a testament to the quality of the build and finish of our projects. Whether our apartments are occupied by the owner, or by a tenant, there is strong demand from people who want to live in a property by DAMAC” said Niall Mc Loughlin, Senior Vice President of DAMAC Properties.
Mauricio Gutierrez and his family own an apartment in Ocean Heights. The family of four moved in to the ocean facing apartment earlier this year. They had been living in a Villa for almost eight years, but had always dreamed of living beside the sea.
“When we saw the apartment for the first time we were really very impressed. It’s just perfect. The view is excellent, in the morning and the evening sunsets, it’s just amazing” said Gutierrez.
His wife Cecilia says in addition to the location and the view, she has been particularly impressed by the standard and maintenance of the facilities at OceanHeights.
“We use all the facilities, we like to go to the sauna and the gym and the pool. They are very well maintained and very, very convenient” said Cecilia.
DAMAC Properties has evaluated the reason behind the high occupancy rates across its residential portfolio and believes it is largely due to a view within the market that properties built by DAMAC are better built and better maintained than those built by the company’s competitors.
“People want to know that when they turn on the tap, the plumbing works, or when they switch on the air-conditioner, the apartment becomes cooler. These are very simple requirements, but it’s not uncommon to hear stories about apartments that don’t meet the most basic of needs” Mc Loughlin commented.
“It would be unreasonable to expect that nothing ever goes wrong in a large apartment building, but with DAMAC Properties, if something is damaged it’s repaired very quickly. We believe that is one of the fundamental reasons behind our high residential occupancy rates” he added.
DAMAC Properties has completed a total of 36 buildings, comprising of 7,364 units, since the company was established in 2002. Of the 36 completed buildings, 30 have been completed since the onset of the recession in 2008.
“We are one of a handful of Dubai developers that has still been building and delivering to customers even during the downturn. This is a fact which has helped build confidence and trust in the company. Our customers know we will be here tomorrow, and that’s important” Mc Loughlin noted.
The higher occupancy rates can also be explained by a surge of new residents to Dubai. The Dubai Statistics Centre estimates more than 8 thousand new residents are moving to the emirate every month, which will push the population above 2 million before the end of this year.
Commenting on the figures, Mc Loughlin said: “The economic crisis in the Eurozone is prompting a wave of European expatriates heading to Dubai in search of work. Typically these expatriates demand high quality housing, and that is supporting rental demand for the type of high-end apartments constructed by DAMAC Properties.”
Investors are recognising the investment opportunity, with low purchase prices and high rental returns creating some highly favourable yields. Residential yields in Dubai are anywhere between 7 - 12 % according to real estate consultancy CB Richard Ellis.
“At DAMAC Properties, we have an array of high quality inventory, which is extremely attractive for investors as they can calculate their rental yield, and see a return on investment almost immediately” said Mc Loughlin.
Investor confidence in the UAE is now at its highest level in 12 months, according to the latest FPI investor sentiment survey. Investors are upbeat about the outlook for the UAE economy, with almost 60% of investors predicting that investment markets will improve over the next six months.
DAMAC Properties is an internationally recognised, luxury-focused, high-end developer. With a proven track record for delivering some of the most luxurious residential properties across the Middle East region, the developer is well capitalised and has the vision and momentum to provide solid investment opportunities for customers across all the markets in which it operates.