Friday, June 28, 2013

Growing property prices, rentals in Dubai reflect broader market recovery

Rentals and prices of apartments in Dubai continue to strengthen, reflecting a broader recovery in the market with data from Reidin.com, which shows apartment rentals and prices outperforming the villa segment on month-on-month basis.

Apartment sale prices grew to touch 2.13 percent month-on-month and 17.3 percent year-on-year, while villa sale prices touched 1.56 percent month-on-month and 12.2 percent year-on-year.

Overall, the Dubai Residential Property Sales Index for all residential grew 4.2 points, touching 212.5 from 208.3 representing an increase of 2.01 percent month-on-month and 16 percent year-on-year.

Jones Lang LaSalle, a real estate consultancy, has said that property sales prices were 18 percent higher in the first quarter of 2013, in comparison to same period last year.

Latest report by Deutsche Bank revealed property prices in Dubai saw a 6.2 percent growth during the first three months of the year, although apartment prices remain between 43 and 61 percent below peak prices.
Global property consultant, Knight Frank, said real estate prices in Dubai saw 18.3 percent growth over the past one year in the emirate, thereby maintaining its position among the top five best performing real estate markets in the world.

Reidin.com said rentals for apartments climbed 2.02 percent month-on-month and 11.6 percent year-on-year, while villa rates grew marginally by 0.85 percent month-on-month and 13.4 percent year-on-year.

Although JLL has said that rentals have grown in areas such as Dubai Marina, Burj Downtown and Palm Jumeirah, the new Reidin.com May figures reveal a broader recovery taking place in the market.

Well-established residential communities in Central Dubai are likely to see further growth in prices and rentals over the rest of 2013, while the less completed projects in remote areas will require more time before seeing increased demand and performance.

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