The prime residential areas in Dubai will witness a steady and sustainable price increase in 2013, say real estate experts.
Established villa communities such as Meadows, Emirates Hills and Palm Jumeirah, will remain attractive for buyers this year, in comparison to secondary villa markets. The high-end villa developments such as those found in Meadows, Palm, and Emirates Hills, will continue to outperform the secondary villa markets.
Meanwhile, in the apartments sector, the Downtown Dubai will continue to dominate. The prices of apartments in prime locations such as Downtown Dubai, will see maximum increase this year, said Richard Paul, Associate Director at Cluttons Dubai.
On the whole, any development that meets quality specifications, design and is in a prime location will see better growth in 2013, he said.
Leading global property consultancy, Knight Frank, said that Dubai’s status of being a ‘safe haven’ for buyers in Middle East and North Africa region, has pushed the villa prices by 20 percent last year.
According to Mohanad Alwadiya, Harbour Real Estate, the prices will continue to grow in 2013. The prices of properties, particularly villas, have grown over the past 18 months. The best performing areas have been the Arabian Ranches and Villa project, wherein the price appreciation, which has increased by 25 percent in comparison to last year.
Alwadiya is of the opinion that villas in established communities will continue to show up investment opportunities.
Deepak Jain, the Head of Strategic Consulting, MENA at Jones Lang LaSalle, revealed that the prices in 2012 showed robust growth in quality areas. However, it is difficult to predict if the prices will continue to grow at the same pace or more.
Further, with several new projects being announced, the increased future supply will also increased pressure on pricing. There may be steady growth in prime locations, but the new supplies likely in future, may soften the growth.
The JLL fourth quarter report indicates that the price recovery was most evident in the villa sector, which grew 23 percent year-on-year, in comparison to apartment sector, wherein the prices grew by just 4 percent.
The Assistant Manager, Real estate department, Kuwait Financial Centre (Markaz), Ramadoss Venkateshwaran, has ruled out any “dramatic” increase in prices. In Dubai, several new projects are likely to be delivered in 2013, but, a dramatic rise in overall price levels is unlikely. However, any liquidity flow driven price rises may not be ruled out.