Dubai’s property prices have recorded strong growth over the last 12 months but still lag behind the 2008 peak levels, according to an Asteco property market report.
Dubai’s villa and apartment sale prices have recorded strong year-on-year growth of 26 per cent and 42 per cent respectively while rents have also risen 19 per cent and 39 per cent respectively as compared to the previous year.
But current rates are still lower than the average prices seen in Q3 2008, the report said.
Rents for apartments and villas have lagged 38 per cent and 31 per cent respectively while average sale prices for Dubai’s property are still as low as 42 per cent when compared to the propert boom period.
Though prices are forecast to rise again, they will not match the levels seen in 2008 peaks in short to mid-term, the report said.
According to the report, political stability, trade links, a diversified economy, regulatory infrastructure and an attractive tax environment have all contributed towards a resurgence in transactional activity over the past 12 months. This has in turn led to a significant appreciation in sales and rental prices.
Among the apartments, International City outperformed the market with an increase of 35 per cent over the last 12 months, the report said.
Villa rental rates fared the best in The Springs, which saw a 34 per cent increase followed by Mirdif, which rose by 31 per cent. Palm Jumeirah remains the most expensive place to rent a villa, just 10 per cent below its 2008 levels.
The report also noted that the apartment sales prices in Discovery Gardens and Jumeirah Lakes Towers were up 75 per cent and 46 per cent respectively. In terms of 2008-2013 performance, apartment prices at Jumeirah Beach Residence and Greens were 32 per cent and 33 per cent below their 2008 peaks.
“Recovery is well underway with a year-on-year average rental growth,” said John Stevens, managing director, Asteco property management.
“We expect rental growth to continue as economic improvements fuel internal demand as well as result in new arrivals.”