House prices show 1.2% increase in Q3

A moderate growth of 1.2 per cent was reported in Dubai house prices in the third quarter of 2009 after prices fell in the initial six months of the year, according to global property consultancy Knight Frank.

"Prices in Dubai have fallen significantly over the year but posted a small recovery of 1.2 per cent in the third quarter," the global property consultancy said in a report.

On Monday, AT Kearney said the UAE has moved to 18th position from 31st in 2008 in terms of real estate development potential across emerging markets.

House prices are rising in a clear majority of locations around the world with almost 70 per cent of the locations in their global house price index reporting growth in the third quarter, Knight Frank said.

Separately, Jesse Downs, Director of Research and Advisory Services at Landmark Advisory, told Emirates Business that average residential rents in Dubai have stabilised in the past two months, but a decline was likely in 2010. However in the past three months, there has been an increase in sales and rental activity targeting more "mid-range" quality and locations and a 'flight to quality' trend has been witnessed in the emirate.

 

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