Property Prices Rise in Most Dubai Areas
Signalling a return of investor confidence, Dubai property prices and rents recorded their sixteenth consecutive monthly increase in March, Deutsche Bank said in a press release on April 22. The global investment bank cited figures from its latest research report showing that apartment prices were up by 1.5 percent, while the cost for villas in the emirate increased by 1.6 percent from February to March. Rental values showed similar trends, with apartments up one percent and rental rates for villas rising 0.7 percent month on month.
According to the report, price gains were recorded across most areas of the emirate, with Jumeirah Island leading the way with a nine percent increase. Palm Jumeirah villas were featured at the bottom of the table with a negative six percent change in prices.
The Deutsche Bank’s property price index shows that real estate prices in Dubai bottomed during the second half of 2011 and have been steadily rising since then, gaining 6.2 percent on average so far this year. Deutsche Bank research analyst Athmane Benzerroug said: “The price recovery that started in late 2011 in prime properties is now spreading to second tier communities. Despite new supply, investor confidence remains strong, while main master developers are accelerating project launches.”
Dubai property developers, including Emaar (DFM:EMAAR), DAMAC and Nakheel, have announced new housing developments and resumption of stalled projects, citing what they described as robust demand from both domestic and international property investors.
Dubai Property Prices 40% Below Pre-Crisis Levels
Property consultant Jones Lang LaSalle said earlier this month that Dubai residential property sales prices rose by about 18 percent on the year in the first quarter of 2013, with all property sectors in the emirate "positioned in the recovery stage" of their market cycle for the first time since mid-2008 (All Dubai Property Sectors "Positioned in the Recovery Stage", Says Jones Lang LaSallee). Other real estate consultants and market participants have also reported signs of recovery in the Dubai property market, which saw asset values fall by around 60 percent during the 2008/2009 financial crisis.