Real estate prices and rentals in Dubai have grown for the 16th consecutive month in March this year, continuing their steady recovery in the sector, and highlighting the return of investor confidence in the emirate, a report said.
The property rates have grown by 1.5 percent from February to March, with increases recorded across most areas. However, prices and rental values remain considerably below their peak 2008 levels, say Deutsche Bank.
The apartment prices were 43 percent to 61 percent below their peak levels, while villa prices were in the range 12 percent to 49 percent below peak prices, the report said.
The rental values showed similar trends. The figures indicated a 6.2 percent year-on-year growth, with apartment prices having shot up 1.5 percent, while villas were up by 1.6 percent.
However, the report said that growth in prices and investor confidence continues despite increase in supply. Since the second half of 2011, Dubai has seen a surge in project launches, particularly from master developers such as Nakheel, Emaar and Damac.
Nakheel has begun several projects, while Emaar recently pre-sold four projects with 1000 units sold overnight at 40 percent premium to market prices, thereby reflecting trends noticed around the world.
Emaar has now announced another new project in Downtown Dubai, which has gone on sale, the report pointed out.
The investor confidence in Dubai market continues to remain strong, while master developers continue to accelerate their project launche, said Athmane Benzerroung, Research Analyst.