Dubai property market finds road to recovery: report
04-07-2012
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"After three years of declining rates and limited sales activity, the real estate market is on the way to recovery, with established quality communities showing increases in values and higher transaction volumes," said Elaine Jones, CEO of Asteco, when commenting on the observations in Dubai's real estate market in the period from April to June.
According to the report, apartment rents and sales prices rose in the second quarter by up to 10 percent and 9 percent respectively, while villa rents and sales prices increase by up to 13 percent and 16 percent respectively.
Apartments in the Gulf Arab sheikhdom's hotspots like the Dubai Marina district and the centrally located Downtown Dubai were the most sought after witnessing a 10 percent increase, with a two- bedroom apartment costing between 90,000 Dirham (24,543 U.S. dollars) and 120,000 Dirham (32,724 U.S. dollars) per annum.
Villas on the Palm Jumeirah, the man-made island in the West of the emirate, cost now a whopping 17,200 Dirham (4,690 U.S. dollars) per square meter, followed by Jumeirah Islands at 10,750 Dirham (2, 929 U.S. dollars).
Regarding the upcoming second half of the year, Asteco CEO Jones said that "sales prices will continue to rise for quality developments, especially villas... Further demand will also be evident from overseas buyers escaping economic woes in the eurozone and political instability in other parts of the region."
