Property prices in prime locations of Dubai, particularly Downtown Dubai and the Palm Jumeirah, rose by over 30 per cent in 2012, according to Hamptons MENA.
The real estate consultancy, in its 2012 property report, put average price jumped between 20 and 30 per cent with Arabian Ranches leading the villa segment and Downtown Dubai and Emirates Living the high-end apartment market.
Global property consultancies such as Jones Lang LaSalle and Knight Frank have put price rise in prime villa communities at 20 per cent year-on-year.
The Dubai Land Department in its 2012 annual report said Dubai Marina and Burj Khalifa were the most traded areas with the two districts jointly registering 10,554 transactions worth Dh17 billion. The total value of real estate transactions in Dubai have increased by 8 per cent to Dh154 billion in 2012 compared to Dh143 billion last year.
Over 7,500 sales and leasing enquiries in 2012 for Hamptons originated from Downtown Dubai and Dubai Marina followed by Emirates Living, Arabian Ranches, Jumeirah Lakes Towers and The Palm Jumeirah.
More number of small-size families showed interest in buying properties with the average size coming down to 1,320 square feet compared to 1,722 square feet in 2011.
Communities with solid infrastructure and close to Dubai Metro witnessed high demand, for both sales and leasing, registering gains in capital and rental values.
The company expects demand for apartments in Downtown Dubai and Dubai Marina to increase in the coming months.
Their view corroborates Emirates 24/7 report that stated that established villa communities such as Palm Jumeirah, Meadows and Emirates Hills would remain attractive locations for buyers, while Downtown Dubai will continue to dominate the apartment side.
Niraj Masand, Head of Operations of Hamptons MENA, said, in a statement: “The strong performance of the residential property market in 2012 is a reflection on Dubai’s sound economic fundamentals.
“Led by the robust performance of its traditional growth sectors including retail, tourism, aviation, hospitality and trade, Dubai has established its position as the region’s business and tourism hub. This had a positive impact on the property sector too, with the established communities in Dubai witnessing price increases of up to 30 per cent.”
The total value of transactions by Hamptons Mena rose by over 16 per cent in 2012 compared to 2011.
Follow Emirates 24|7 on Google News.