Monday, March 17, 2014

Dubai property prices surge 35 percent last year

Real estate prices in Dubai surged by 35 percent last year, according to latest report by the Global House Price Index, a UK-based consultancy.

According to the report, prices jumped by 34.8 percent during the 12-month period in 2013 (Q4 2012 to Q4 2013), and said that the mainstream prices continue to remain 25 percent below their 2008 peak.

Dubai recorded the largest annual rise in mainstream real estate prices, with prices having grown 15.3 percent during the six-month period, the report said.

During the month of February, Jones Lang LaSalle (JLL), the real estate consultancy said that prices were below the 2008 peak, and will touch the peak in the next 10 to 18 month time.

According to Craig Plumb, Head of Research, JLL-Mena, in certain locations the prices have touched the 2008 level, but overall, the prices will reach that level in the next 10 to 18 months.

In the past, Standard Chartered and Goldman Sach Group said that the growth of real estate market in Dubai has been sustainable and there has been no fear of a property crash.

Meanwhile, the Knight Frank price index shows that China and Taiwan came second and third on the list, recording 28 percent and 15 percent growth respectively. Out of the 56 countries recorded in the index, 39 countries showed positive annual price growth last year, in comparison to 27 countries in 2012.

Knight Frank revealed that the headline global index depends on each country’s GDP, which implies that the movement of house prices in the China and US have a great impact on index’s performance.

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