Dubai market up 6.2% on year, says Deutsche Bank
Real estate prices and rental values in March rose for the 16th successive month, with home prices increasing 6.2% year-on-year, new data shows.
Property prices increased 1.5% from February to March with price increases in most areas, but they are still below the 2008 market peak, says the report from Deutsche Bank.
Apartment prices are up to 61% below their historic high and villa prices are up to 49% below peak prices. Rental values show similar trends.
Apartment prices were up by 1.5% while villas were up 1.6% and the growth in prices and investor confidence continues despite increased supply, says the report.
Research analyst Athmane Benzerroug says, “The price recovery that started in late 2011 in prime properties is now spreading to second tier communities. Despite new supply, investor confidence remains strong, while main master developers are accelerating project launches.”
Since the second half of 2011, Dubai has seen an increase in project launches by master developers such as Emaar, Nakheel and Damac.
Nakheel has restarted various projects while Emaar recently pre-sold four projects with more than 1,000 units sold overnight featuring prime units selling at a 40% premium to market prices.
Meanwhile, most Dubai residents are worried about increasing living costs, including spiralling property rents, says a separate survey.
A total of 54% of respondents are worried about the rising cost of living, which has coincided with a strengthening economy, according to a survey by Dubai’s Department of Economic Development.
Almost one-third (31%) of consumers say they are looking to cut back on expenses, reveals the survey of 2,000 Dubai residents aged 20-59, which was conducted in the first quarter of 2013.