Real estate prices in Dubai have grown to be second highest registering a 20 percent increase in 2012, a new global report said.
The Wealth Report 2013 reveals that Dubai stands out with a strong growth of 20 percent in prices of luxury villas in 2012. The emirate rebounded in 2012, on the back of resurgence in demand, said Knight Frank, a global real estate company.
This was further aided by lower prices, and strengthens Dubai’s position as a strategic hub, being able to attract wealth from Middle East, North Africa, the Indian Subcontinent and Central Asia, said the Knight Frank report.
Indonesia’s Jakarta topped the list of 80 global cities that were surveyed, with prices having grown by 38 percent. Dubai’s second position has been shared with Bali.
Miami, in the US took fourth place, with 19.5 percent increase, while Brazil’s Sao Paulo stood fifth (14% growth), Gstaad of Switzerland was sixth 13.2 percent, followed by Auckland (New Zealand) with 12.7 percent. Eighth position was shared by Guangzhou (China) and Los Angeles (the US), and Shanghai of China stood in the 10th position with 10.8 percent growth.
A Citibank report last year said that the recovery of Dubai property sector is in-line with the wider economic upturn and strong economic fundamentals of the emirate.
The bank emphasized that Dubai’s economic rebound and improved investor sentiment has breathed life into the property market during the recent months, with volume and value of real estate transactions in the emirate having grown since the beginning of the year.
According to global real estate consultant, Jones Lang LaSalle (JLL), real estate prices in Dubai will grow, but, at a slower pace, in comparison to last year. The prime villa segment has grown 20 percent, while apartments have shown 7 percent increase.
The prime luxury properties in Dubai are 10 times lower than Monaco, the world’s most expensive residential property market. The report said that prices of properties in Dubai falls in the range $520 to $580 per square feet during the last quarter of 2012, in comparison to the prices of $5350 and $5920 per square feet in Monaco, during the same period.
Among all the 20 cities surveyed, the report said that Dubai stood 19th in terms of prices of properties, while the last position for Cape Town, where prices ranged between $510 and $570 per square feet.