A Gulf Business Report Reveals Dubai Property Prices Increased up to 24% Over the Past Year in Residential Villas and Apartments
DUBAI, UAE, August 5, 2012
DUBAI, UAE, August 5, 2012 /PRNewswire/ --
The Dubai property sector is showing strong signs of recovery following the 2008/2009 crash that hit Dubai investors during the international financial crisis. Citing a report from property management company Asteco, Alicia Buller, Editor of gulfbusiness.com said "the real estate market in Dubai is finally showing signs of a return to positive growth, the market is indicating that these increases in property values are being driven in communities populated by expats, reinvigorating investment in the United Arab Emirates."
Emaar's Arabian Ranches is the top performer according to the report, the villas saw prices rise 24%, an increase of nearly 2,000Dhs ($544) per square meter over the comparison period in the report, which took the average second quarter sale prices in 2011 and 2012 of villas and apartments to assess the relative health of the suburbs in Dubai. The villas in the Springs (part of the Emirates Living community) and apartments in Dubai Palm Jumeirah, traditional expat communities, saw property prices 19% and 17% respectively.
Villas properties performed the best in Dubai, with six out of the top nine areas being those heavily populated with villa properties, traditionally areas where expats are able to purchase and rent properties. Outside of the top three areas listed above, the villas in Dubai, which performed well over the past year, include the Meadows, Jumeirah Islands, the Green Community and Palm Jumeirah, a Nakheel development. Although the villas on the Palm saw a smaller percentage rise than apartments at only 7.5%, these villas are at the top end of the market with an average five bedroom, 5,200Sqm villa fetching 12,000,000 AED, $3,678,000.
"After three years of declining rates and limited sales activity, the real estate market is on the way to recovery, with established quality communities showing increases in values and higher transaction volumes," said Elaine Jones, CEO at Asteco who provided the data for the report. The apartments in Dubai are also performing, again in areas where the expat community buy and rent property, in Dubai Marina where prices rose 7.5% and in the Greens where apartment values increased by 4%.
This growth in the market is was also seen in a recent Gulf Business report on Dubai rentals, which shows an increase of 2% over the year to the end of quarter two, which further points to an emerging recovery in the real estate sector.
Properties in Dubai that are not performing well, again referring the report by Asteco which points to oversupply in areas that have not completed the development phase were Discovery Gardens, with prices falling 22% and Jumeirah Lake Towers declining 10% compared with the same period last year. Some areas remain flat, particularly apartments in DIFC and the Downtown area where a large number of properties have come on line over the past year and have affected growth of existing properties in the area.
As the year progresses, sales prices will continue to rise for quality developments, particularly villas, according to Asteco. Elaine Jones further commented that "the number of owner-occupiers rose steadily in line with improved financed options offered by banks, which we expect to continue", with potential for further demand "from overseas buyers escaping economic woes in the Eurozone and political instability in other parts of the region."
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