According to new figures released by a Dubai-based real estate company, property prices in the estimate rose yet again in the third quarter of 2013, but are still significantly lower than they were at their 2008 peak.
Asteco Dubai’s third quarter of 2013 report reveals that sales prices of residential villas and apartments recorded year-on-year growth of 26 per cent and 42 per cent respectively in the July to September period. However, overall property prices are still 42 per cent lower than what they were at the same time five years ago, after years of falling prices during the global financial crisis.
According to the report, increased political stability, trade links, a buoyant and diversified economy, regulatory infrastructure and an attractive tax environment have all contributed towards a resurgence in transactional activity over the past 12 months
“While we have seen numerous project launches and increased interest in buying off-plan properties, projects with favourable payment plans in good locations saw the bulk of demand,” said John Stevens, Managing Director, Asteco Property Management.
However, it’s not only property prices in Dubai which are well below their peak levels. Rental prices are too. “Almost in parallel with the sales market, apartment and villa rents are still below third quarter of 2008 levels by 38 per cent and 31 per cent respectively,” explained Stevens.
“However, recovery is well underway with a year-on-year average rental growth of 23 per cent for apartments and 19 per cent for villas. We expect rental growth to continue as economic improvements fuel internal demand as well as result in new arrivals,” he added.