Average rents of villas and apartments in Dubai rose 17 percent in 2012 due to the influx of people escaping the Eurozone debt crisis and the Arab Spring, according to Asteco Property Management.
“Mid to high budget enquiries have increased and stock in popular developments is drying up,” said Asteco.
“In terms of supply and demand, Dubai is still benefiting from the euro crisis and the Arab Spring as people seek stability and better economic conditions.”
The highest rental growth was seen at apartments in Discovery Gardens and residential villas in the Springs area. In contrast, rents of commercial real estate saw “little movement” in 2012.
“If demand continues, we expect to see a shift in the market from being predominantly tenant-led to one controlled by landlords, especially in quality, well-managed and established developments,” said John Stevens, Managing Director of Asteco.
Meanwhile, sale prices of villas rose 23 percent compared to the previous year, while apartments climbed 14 percent.
“The buyer profile was dominated by self-use and investments for rental income, with expatriates taking a longer-term view of living in Dubai,” said Asteco.
Dubai had previously seen one of the worst property crashes in the world, with home prices falling by 65 percent since their 2008 peak. The emirate’s property market is now recovering and several large-scale projects were announced in November 2012, including plans to develop a new district with 100 hotels, the world’s biggest mall and gardens which will be larger than London’s Hyde Park.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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