Dubai’s residential market showed a strong surge in market confidence with the sale prices of apartment complexes in Discovery Gardens and The Greens rising 17 per cent and 15 per cent respectively in Q2 2013.
According to an Asteco report, both apartment and villa sale prices have recorded positive growth in the second quarter. Apartment sale prices grew by 12 per cent on average this quarter as compared to the previous quarter while villa sale prices rose eight per cent during the period.
The price at Discovery Gardens peaked to Dhs7,550 per square metre while The Greens recorded a selling rate of Dhs12,400 per square metre, the report said. Downtown Dubai remained the most expensive area to buy an apartment with a rate of Dhs 17,750 per square metre, 18 per cent higher than the previous quarter.
Among villa complexes, Jumeirah Village recorded a 25 per cent quarter-on-quarter increase in prices with villas selling at Dhs8,100 per square metre while The Springs recorded a 11 per cent increase with price reaching Dhs10,750. Arabian Ranches too showed a 10 per cent hike with prices reaching Dhs 11,850 per square metre.
“Sale prices should continue to rise as market confidence picks-up in parallel with the improving economy, particularly for villas from aspiring owner-occupiers, that want to jump on to the property ladder,” said John Stevens, managing director at Asteco property management.
Apartment and villa rents too grew at an average of seven per cent and six per cent respectively during Q2 2013, as compared to the previous quarter, the report said.
International City recorded the highest growth in rents with a 11 per cent increase for a two-bedroom unit while Dubai Marina recorded a growth of eight per cent for a two-bedroom apartment. The Springs and The Meadows recorded a rent hike of 10 per cent and eight per cent respectively this quarter.
“As rental demand increases and rates rise, some residents will be priced out of established communities into less developed, more affordable areas. Some may even decide to relocate to more budget-friendly neighbouring emirates,” said Stevens.
The commercial units in the market too saw continued growth in Q2 2013. Jumeirah Lake Towers recorded the highest hike in rents, up 75 per cent from the previous quarter.