Property prices in Downtown Dubai, a development that houses the iconic Burj Khalifa and Dubai Mall, surged by between six and 10 per cent in the fourth quarter alone, compared to third quarter of 2012, due to high investor demand and no new supply in the area, real estate agents say.
“With the high demand for properties in the Downtown district and decrease in supply and properties being listed for sales or rent, the area has seen an increase in prices as high as 10 per cent in the fourth quarter of 2012 compared to the third quarter,” Asal Abedi, Residential Consultant, Head Office, Better Homes, told Emirates 24|7.
Overall, he estimates property prices in the area to have gone up by 20 to 25 per cent depending on property and location in the Downtown core.
Mohanad Alwadiya, Managing Director, Harbor Real Estate, states demand for properties in the district has pushed prices by six per cent in the fourth quarter alone.
“The sale prices have seen an increase between three and five per cent in the second and third quarter and have further risen by nearly six per cent in the fourth quarter.”
On an average, he believes, Downtown area witnessed an increase of between 11 and 14 per cent in sale prices since the start of the year.
“Downtown has and will always continue to attract tenants as it is a quality development, strategic location and a family friendly community.
“Being one of the most popular residential areas with high occupancy rates also translates to more demand and increased prices.”
Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, admits that the maximum price rise in the district was witnessed in the fourth quarter as demand soared after the launch of The Address The Boulevard apartments.
“Prices have gone up by 15 to 20 per cent from start of the year to date, depending on the towers in the district and offering.”
CB Richard Ellis, in their latest report, said property prices had increased by an average 13 per cent in prime locations, with the Downtown Dubai developments appreciating by over 20 per cent year-on-year.
Emaar Properties, the master developer of Downtown district, has already announced expansion of Dubai Mall and recently launched the “Sky” collection in The Address The BVLD project.
Even a foreclosed property in Downtown Dubai that went under hammer at Dubai Land Department's public auction in early December was sold for almost double the reserve price.
The 76.74 square metre apartment in Reehan 1, Downtown Dubai, was bought for Dh1.39 million (base price: Dh700,000).