Dubai property market strengthens, prices rise 16% year-on-year

Rents and prices of apartments in Dubai are continuing to strengthen, reflecting a broader recovery in the market with Reidin.com's data for the month of May showing apartment rents and prices outperforming the villa segment on a month-on-month (mom) basis.

Apartment sales prices rose 2.13 per cent mom and 17.3 per cent year-on-year (June 2012 to May 2013), while villa sales prices went up by 1.56 per cent mom and 12.2 per cent yoy.

Overall, the Dubai residential property sales index for all residential increased by 4.2 points to 212.5 from 208.3, representing an increase of 2.01 per cent mom and 16.1 per cent yoy.

Jones Lang LaSalle, a property consultancy, has said property sales prices were 18 per cent higher in the first quarter of 2013 compared to same period last year.

A recent report by Deutsche Bank said property prices in Dubai saw a 6.2 per cent growth in the first three months of 2013, though apartment prices remain between 43 and 61 per cent below peak prices.

Knight Frank, a global property consultant, said property prices in Dubai rose 18.3 per cent in the past one year (March 2012 to March 2013), with the emirate maintaining its position among the top five best performing real estate markets in the world.

Rents climb 11.9% yoy

On the rental side, Reidin.com said apartment rates climbed 2.02 per cent mom and 11.6 per cent yoy, while villa rates rose marginally by 0.85 per cent mom and 13.4 per cent yoy.

The residential property lease index saw an increase of 0.43 points, from 79.37 to 80.80, registering a rise of 1.80 per cent mom and 11.9 per cent yoy.

Although JLL has said that rentals have risen in areas such as Burj Downtown, Dubai Marina and Palm Jumeirah, the new Reidin.com May figures reveal a broader recovery taking place in the market.

JLL had said: “"While well-established residential communities in Central Dubai are expected to see further price and rental growth over the rest of 2013, less completed projects in more remote areas will need more time before seeing increased demand and performance.”

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