A recent report reveals that residential property prices in Dubai will increase between by 10 to 15 per cent by the end of this year.
House prices in the emirate have been outstripping increases in most other countries over the past 12 months, and according to HSBC’s latest Global Researchreport, the growth is unlikely to slow any time soon.
“We forecast 10-15 per cent growth in prices from current levels in 2014 and relatively stable net yields at 4.5-5 per cent,” the bank said in a recent report on the UAE real estate market. “We expect this trend to continue at least for the next two years as the economy recovers and Dubai maintains its reputation as a safe haven in the region,” the bank added.
However, in spite of the rising prices experts are not overly concerned that there will be a price crash in the emirate. Standard Chartered and Goldman Sachs Group have both previously stated that the Dubai property market growth was sustainable and there were no fears of a property crash.
Earlier this year, international property consultants Knight Frank’s Global House Price Indexrevealed that Dubai recorded the largest annual rise in mainstream house prices last year, with prices ending 2013 34.8 per cent higher on average than they were at the end of 2012. However, property prices in the emirate still remain around 25 per cent below their 2008 peak.