Villa prices in Dubai has grown five percent during third quarter of this year, owing to limited supply, and the trend is likely to continue in short to medium term, say the latest report from Jones Lang LaSalle (JLL), the leading global real estate consultancy.
However, JLL has clarified that the growth in villa prices are unlikely to continue into the broader residential market during rest of the year.
The chance of recovery in 2012, will depend on the rate of economic growth, and demand for residential properties in Dubai by end-users, JLL said.
Dubai will witness completion of at least 5000 units by the end of this year, with another 27,000 units due for completion next year. This will lead to increased supplies and thereby, delay in price recovery, the report points out.
During the third quarter alone, new completions totalled to 4000 units, bringing total residential properties to 326,000 units. Majority of completions during this quarter were in Grosvenor House Residence in Dubai Marina, Masak in Jumeirah Park, and La Riviera in Jumeirah Village.
Fresh supplies are likely to come in from Dubai Marina, Dubailand, and Sports City during the fourth quarter. In September alone, nearly 11,000 units, constituting 56percent have been completed.
JLL said an improvement in sentiment in Dubai residential market has been witnessed during first nine months of the year, based on reports from property agents and valuers.
As for apartments, Dubai has seen slight drop or rather stable prices, indicating that market is almost hitting its bottom.