Dubai property prices jump 21.1% in Q1

Property prices in Dubai rose 21.1 per cent in the year to the end of March, according to a Knight Frank report.

The emirate is ranked third for price increases with Hong Kong and China coming first and second, the consultancy’s new Global House Price Index reveals.

“Property prices in all world regions, except Europe, increased in the year to March with the Middle East performing best, rising by 10.6 per cent on average,” Kate Everett-Allen of Knight Frank’s International Residential Research said in the report.

The price index showed a 9.2 per cent increase in Dubai’s property prices in first quarter compared to the fourth quarter 2012 and 18.9 per cent in a six month period (Q2 2012 to Q1 2013).

A previous Knight Frank report ranked Dubai fourth among the world’s luxury property markets, as the city resisted a global slowdown with a 5.4 per cent rise in the most upmarket residences, Al Arabiya reported in April.

Hong Kong saw record increase of 28 per cent, followed by China at 23.8 per cent. In India, property prices grew 8.5 per cent. Thirty five of the 55 housing markets analysed, or 63 per cent, registered gains.

In March, Knight Frank’s Wealth Report 2013 said property prices in Dubai rose the second highest globally, registering a 20 per cent increase in 2012.

"Dubai stands out with strong growth of 20 per cent in the price of luxury villas during 2012... the emirate rebounded in 2012 on the back of  a resurgence in demand,"  it said.

The Wealth Report said that an investor could buy 169 square metres of prime space for $1 million compared to a mere 16 sqm in Monaco, 19 sqm in Hong Kong, 23 sqm in London, 38 sqm in Singapore and 88 sqm in Mumbai.

Jones Lang LaSalle, a global property consultant, expects property prices in Dubai to rise but at a slower pace compared to last year. The prime villa segment saw a 20 per cent rise, while apartments increased seven per cent.

The report also found that Dubai’s prime luxury properties are over 10 times lower than Monaco, the world’s most expensive residential property market.

Prices for properties in Dubai ranged between $520 and $580 per square feet (psf) in fourth quarter 2012 compared to prices of between $5,350 and $5,920 per square feet in Monaco during the same period last year, the report said.

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