Dubai real estate market price rising up in 2013

0
31

The year 2013 saw Dubai defying the global slowdown in the luxury property market by posting a 5.4 percent rise in prices in the first quarter of 2013. This has been stated by Knight Frank, which is an international Consultancy on global real estate .

That is good news for those planning property for sale in Dubai UAE. According to Knight Frank, Dubai continues to be one of the top five performing real estate markets in the world. Overall Dubai property prices spurted 18.2 percent between March 2012 and March 2013.

Positive Vibes

There is a positive momentum in the residential sector with solid market fundamentals and steady economic growth  but there is a modicum of concern that escalation of sales and leasing rates are a little ahead of reality.

The research note pointed out that while sales volumes jumped 30 percent in the first quarter, figures actually dropped since the last quarter of 2012. In sales, 60 percent took place Marina, Emirates Hills, the Palm Jumeirah and Downtown Dubai. These areas also saw rents of two-bedroom units up by 27 percent year-on-year basis.

In the Greens, rents were up by 40 percent in the last one year while average villa prices jumped almost 5 percent in the first quarter. The smaller villas had a much higher growth.

The prime rents in CBDs rose 4 percent on a quarter-on-quarter basis while in Jumeirah Lakes Towers, Business Bay and TECOM rental growth were viral.

The arrival of  a slew of new mega projects including the Mohammed Bin Rashid (MBR) City, which is a mixed-use development in Dubailand may ease the supply constraints.

Rents Up

Rents in the city spiralled significantly over the first three months of the year 2013 with average apartment rents up 3 percent – reflecting a 19 percent increase over last year.

Rents of Apartment rents grew mostly during the start of the year at International City where the cost of renting a two-bedroom flat jumped 8 per cent to DH 40,011.

The Palm Jumeirah was expensive to rent, with a three-bedroom villa costing DH 323,000 per annum.

Apartments & Villas

Those planning apartments for sale in Dubai,  news is that apartment sales prices are showing a whopping 27 percent plus higher yield than last year and villa prices are now 24 per cent higher, according to property broking firm Asteco.

At Nakheel’s Discovery Gardens apartment complex in Jebel Ali prices jumped 33 per cent to reach US$1, 753 per square meter. At Dubai Marina and Jumeirah Beach Residence, it grew 14 per cent and 15 per cent respectively towards US$3, 511 and US$3, 370.

Perhaps Dubai’s most expensive is Palm Jumeirah where apartment prices currently stand at US$4, 395 per square meter and villa prices  US$5, 562 per square meter.

Closely following is the Dubai International Financial Center where prices are at US$4, 243 per square meter and Downtown Dubai at US$4, 080 per square meter.

Emaar’s Springs saw the highest year on year price rises, with a 29 percent increase on the previous year at DH 9,600 per square meter.

It followed a couple of days after the UAE Central Bank persuaded banks to approve new caps on mortgage credit aimed at preventing a new property bubble.

LEAVE A REPLY

Please enter your comment!
Please enter your name here