The year 2013 is throwing up enough indications that Dubai property market is rocking and great recovery is on as more Property for Sales in Dubai is in sight. There is all round optimism and enthusiasm among investors that property investment in Dubai is set to be profitable this year. This hope is backed by the developments in 2012 that led to drastic recovery when many mammoth projects were launched and adequate supply of residential and business developments that rejoiced the investors.
The recent property trends indicate that the average rent in Dubai’s residential property increased 16 percent in the first quarter of 2013 against the average rent of the same period in the first quarter (Q1) of 2012. The renewed buoyancy in Dubai’s residential sector witnessed by galloping rental rates (four per cent) on quarter-on-quarter basis is on the back of steady economic growth that followed the slump that came in a couple of years ago.
Dubai Marina Leading
The sales market was led by posh residential locations of Dubai—Dubai Marina; Palm Jumeirah; Emirates Living as well as Downtown Dubai. They together clocked 60 per cent transactions as an increase in volume terms. Dubai Marina had maximum transactions with sales constituting 25 percent. In the case of premium apartment properties, residential rents in Dubai Marina surged by 4 per cent quarter-on-quarter basis and 19 per cent on a year-on-year basis.
The CBRE report also quotes that villa properties were showing upward trend in both rents and sales in the past five consecutive quarters. The upturn in business is a clear indication of rising consumer confidence backed by stable economic conditions and clear recovery.
Overall property for sale in Dubai is seeing a 30 percent spurt in average sale price in the segment of Dubai apartments when the first quarter of 2013 is compared to that of the year 2012.
- From September 2012 to March 2013, the prices of ultra-modern villas jumped by 8.6 percent.
- Prices of Mid range villas went up 14.7 percent.
- Prices of modest villas grew 20 percent.
- All categories of low budget residential units had a price hike of 14.5 percent
- High and mid range apartments registered a price spurt of 11 percent
- The rentals of high range and middle range villas were up by 9.7 percent and 6.2 percent respectively, from September 2012 to March 2013.
Invest in Apartments
Investing in the Rental apartments in Dubai is a great option. As serviced apartments are becoming a great option for middle class vis a vis hotel stays, Investors are ready to put their money into these apartments. The demand for rental apartments is expected to double in the coming decade. The Freehold law introduced in 2006 by the Dubai administration was a watershed in allowing foreign investors to lease or own property in Dubai. This made real estate market of Dubai a lucrative destination for all investors.
One might feel like endorsing the views of experts that the Dubai real estate market will be heading for a consistent growth in the near future. So the current optimism bodes well for all types of investors looking to buy property in Dubai.