Dubai: Property Prices and Rents Increase

According to the renowned property company Asteco, demand for property in popular locations in Dubai is increasing and therefore pushing up prices greatly.
The biggest selling price rises in the first quarter were for apartment owners specifically, whose properties jumped 12% in value while villa prices stayed almost the same with a still very healthy 5% increase, according to Asteco’s latest research report.

“The overall outlook is positive with demand and rates expected to continue to grow. However, this will also mean that some tenants and buyers will be priced out of certain buildings or communities,” said John Stevens, managing director of Asteco. “Prices are not only being driven by tenants relocating, Dubai is also attracting new tenants and those expatriates here are still tending to take a longer term view of living in Dubai,’ he added.

Apartments in Downtown Dubai and Dubai Marina saw some of the largest rental increases, rising 21% and 22% respectively, with an average two bedroom apartment in both areas selling for around AED100,000 to AED125,000 per annum.

Discovery Gardens boasted its apartments as having the most substantial increase in asking price, rising 33% to AED6,450 per square meter during the first three months of the year. The only other double digit growth was seen in Dubai Marina and Jumeirah Beach Residence, which increased 14% and 15% respectively to AED12,900 and AED12,400. As for villas, The Meadows came top for price rises in the first quarter, up 10%, with Jumeirah Islands and Jumeirah Village joint second on 9%.

Stevens concluded, “In terms of supply and demand, Dubai is still benefiting from the Arab Spring and the euro crisis, which was brought into sharper focus recently with the Cypriot banking crisis. Good quality stock is gradually being reduced while the length of time that advertised units stay on the market now is also shortening.”

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