Dubai’s property market has been ranked the strongest in the world according to an independent report, after a resurgence in activity over the past 12 months.
The study by Global Property Guide shows the emirate’s residential property index jumped 13.46 per cent during the past year, in comparison to a 1.8 per cent decline in 2011.
Dubai’s real estate industry saw several big announcements in 2012, including another luxury hotel for The Address chain, the unveiling of MBR City and a new community development by Meydan.
Meanwhile international investors have been attracted by zero tax on capital gains on property sales and rental yields.
Real estate firm Jones Lang LaSalle said recently in a report that Dubai is now the favourite destination for overseas investors.
Niall McLoughlin, senior vice president at local property firm DAMAC Properties, said: “Even the steady and consistent growth to pricing we have seen in the past year in Dubai is truly impressive when placed alongside the international markets.
“While we still predict a more stable growth pattern through 2013, Dubai’s property market is certainly again considered one of the best locations in the world for real estate investment.”
“Many global investors are looking to spread the exposure of their portfolios and the Dubai property market is proving to be a key investment vehicle, not only for ‘institutional investors’ but also individuals who recognise the medium to long term gains available in a strengthened real estate market.”