Real estate in Dubai rising rents and property pricesThe latest report from a leading property consultancy has found that the residential property market in Dubai is recovering after some difficult years. Sales prices and apartment rents have both risen sharply in the last quarter, making the emirate once again a great choice for overseas property investors.
Keep reading to learn more about the buoyant Dubai Property market.
Prices of Dubai Property set to rise in 2012
The latest market reports from property consultants Asteco show that both rents and values of property in Dubai have risen. Sale prices for villas in well located areas have increased by up to 16 per cent in the last three months with average prices up by between 6 and 8 per cent.
Apartment rents increased by 6 per cent in the second quarter of 2012 compared to the previous quarter, and average villa rents increased by 9 per cent.
Elaine Jones, chief executive officer of Asteco said: “After three years of declining rates and limited sales activity, the Dubai Real Estate market is on the way to recovery, with established quality communities showing increases in values and higher transaction volumes.
“Looking ahead to the 2012 year end, sales prices will continue to rise for quality developments, especially villas. The number of owner occupiers rose steadily in line with improved financed options offered by banks, which we expect to continue”
Rents in Dubai up by 10 per cent
Apartment rents in Dubai Marina and downtown Dubai increased by 10 per cent during the second quarter of 2012. The average two bedroom apartment now rents for AED90,000 (£15,800) to AED120,000 (£21,050) per annum.
“Tenants are relocating in search of value for money. One and two bedroom apartments as well as three and four bedroom villas are the preferred unit types. In terms of rates, quality well managed developments, will continue to set the pace,” added Jones.