Dubai rents are up over 16 per cent this year

Property prices and rents in Dubai jumped by 22.4 per cent and 16.6 per cent respectively in the year to November, Reidin.com indices reveal.

The index that measures the average change in house prices in certain districts and communities of Dubai showed prices rising 2.44 per cent in November compared to October. On an annual basis, prices were up by 22.4 per cent.

Apartment sales prices registered an increase in November, increasing 2.90 per cent month-on-month (m-o-m) and 24.5 per cent year-on-year (yoy). Villa sale prices jumped 0.73 per cent mom and 14.9 per cent yoy.

Rents, on the other hand, increased by 1.33 per cent in November compared to October. On an yearly basis, rents surged by 16.6 per cent.

Apartment rents rose 1.37 per cent m-o-m and 17.6 per cent yoy, while villa rents increased by 1.11 per cent mom and 12.6 per cent yoy.

Earlier this month, the Dubai government issued a new decree on rent hikes to limit the arbitrary hikes by landlords, while in October it increase registration fees to 4 per cent from 2 per cent in a bid to control speculators in the market.

In Abu Dhabi, the index showed prices rising by 1.96 per cent in November compared to October and increasing by 19.70 per cent on an annual basis.

Apartment sales prices went up by 1.77 per cent in November and 21 per cent yoy. Villa prices rose 2.04 per cent mom and 16.50 per cent yoy, respectively.

Rentals in the capital registered an increase of 0.88 per cent in November, an annual increase of 3.70 per cent.

Apartment rents rose 1.73 per cent in November and nine per cent compared to November 2012. Villa rents were up 0.63 per cent mom and 4.60 per cent yoy.

Earlier this month, Knight Frank said Dubai's real estate market is forecast to be the world's top performer in 2014, with prices rising by 10 to 15 per cent.

Goldman Sachs Group, a US-based investment bank, has said earlier that property prices were 36 per cent below their 2008 peak even after rising by about a third from a low in the second quarter of 2011.
 

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