Tuesday, December 10, 2013

Residential prices in Dubai topmost in the world, once again

The price of housing in Dubai has once again reached topmost in the world, hitting 28.5 percent growth over the past 12-month period ended 30th September 2013, said the latest report from property research firm, Knight Frank.

Knight Frank’s Global House Price Index tracks mainstream residential prices in 53 countries, apart from Dubai and Hong Kong.

The report says that the average global house prices touched the new peak, mostly in the recent quarter, and has surpassed the previous peak recorded during second quarter of the year 2008, following which, there was a worldwide decline in real estate prices.

Five years thereafter, the prices have once again scaled to new heights, with Dubai’s meteoric rise of 28.5 percent year-on-year, followed by China’s 21.6 percent, and 16.1 percent by Hong Kong.
The strong performance of the index is not only due to surging prices in Dubai, China and Hong Kong but also in other emerging markets, said Kate Everett-Allen, the author of the Knight Frank report.

The Index showed that housing prices in Dubai have surged by 11.8percent over the past six months, and by 4.5 percent in the previous three months. In the preceding quarter too, Dubai saw a record growth rise when house prices grew by 21.7 percent year-on-year, which is also the topmost in the world.

Dubai has been followed by Hong Kong at 19.1 percent, Taiwan at 15.4 percent, Indonesia at 13.5 percent, Turkey at 12.5 percent and Brazil at 11.5 percent.

Last year, the house prices in Dubai had grown by just 2 percent according to Knight Frank Global Housing Price Index, and the emirate was ranked at No.23 in the world in terms of rising house prices. In fact, the emirate was the worst-performing market when surveyed in Q3 2009, with average housing prices having fallen 47 percent year-on-year, landing the emirate at the bottom of Global House Price Index.

Dubai’s surge to topmost position in this year’s report indicates that investors have once again returned to choose Dubai as their favourite property market in the region, and in the world.

According to analysts, the emirate winning the rights to host World Expo 2020 will see a new growth chapter for Dubai and the UAE economy and real estate prices may see a growth in near future.

As per reports by Standard Chartered Bank in September, the real estate price escalations this time are based on better fundamentals, with several factors including subdued mortgage growth, low off-plan sales and improved housing regulation having differentiated this price rally from the one in 2008.

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