Dubai property prices and rents are rising, driven by growing demand for real estate in the emirate, Property Wire reported on April 2. The website cited a research report from property firm Asteco, according to which purchase prices in both the apartment and the villa sectors increased significantly in the first three months of the year.
**Prices on the rise**
The latest report from the Dubai-focused property firm indicated that the recovery of the Dubai property market that started last year continues in 2013. The data reveals that property prices in the sheikhdom went up in the first three months of the year, with average apartment and villa prices rising year on year by 27 percent and 21 percent, respectively. Average rents in both sectors also increased in the first quarter, rising three percent for apartments and four percent for villas. It means that year on year apartment rents are up 19 percent and villa rents up 20 percent, Property Wire noted.
The biggest increases were recorded in popular locations such as Dubai Marina, Downtown Dubai and Discovery Gardens. Average purchase prices for villas increased the most in Emaar’s Meadows project, rising 10 percent to AED11,850 per square metre in the first quarter of the year, beating both Jumeirah Islands and Jumeirah Village, where purchase prices increased by nine percent. Apartments in Discovery Gardens saw the most substantial increase in asking price, rising 33% to AED 6,450 per square metre.
In terms of apartment rental rates, the biggest increases were seen in Dubai Marina (22 percent) and Downtown Dubai (21 percent).
Dubai’s property market, which slumped by more than 60 percent during the economic downturn, is gradually recovering largely thanks to the return of speculative buyers to the residential segment, Property Wire noted.
!m[Dubai Property Gets Pricier ](/uploads/story/1792/thumbs/pic1_inline.png)
Asteco is optimistic about the Dubai property market’s growth prospects in the current year. According to John Stevens, the managing director of the firm, the emirate’s property market is currently benefiting from several factors, including the Arab Spring and the Eurozone crisis which has been brought into sharper focus recently with the banking crisis in Cyprus. Dubai still has the ability to attract new tenants and many of the expatriates in the emirate “are still tending to take a longer term view of living in Dubai,” Stevens said.
“The overall outlook is positive with demand and rates expected to continue to grow,” Stevens opined. He also explained that this will result in some tenants and buyers being priced out from certain buildings and communities.