Dubai celebrates property market recovery
Dubai, April 1, 2014
Dubai is currently celebrating the recovery of its real estate sector as the price increase lures more and more investors to funnel their investments in the emirate's realty market, said a report.
Be it properties for sale or rent, rising trajectories are being witnessed, not only in the primary areas but also in the secondary locations of the city, according to Bayut.com, a real estate portal of Dubai.
The property boom is evident from the fact that various international and local developers have announced multiple projects during the past few months.
The property analysts at Bayut.com analysed villa prices in Dubai and during this analysis, it was found out that along with other segments, the villas segment also remained promising for the investors, not only in the calendar year 2013 but also in the first quarter of 2014.
Experts reckon that the price increase in 2013 was largely backed by the recent economic recovery that this city experienced. Moreover, Dubai hosting the World Expo 2020 further improved the situation, which is why the property prices are skyrocketing continuously, stated the expert.
According to Bayut, the average sale price of three-bedroom villas in Dubai was Dh3.44 million ($937,506) in January 2013. However, in the beginning of the second quarter, the average sale price spiked to Dh3,598,983, seeing a percentage hike of 4.48 per cent.
This rise may seem insignificant, but considering the time span of mere 3 months during which the prices rose by the said percentage, the price jump was indeed reasonable.
Bayut noticed that by the mid of 2013, the average sale price of 3-bedroom villas in Dubai increased to Dh3,848,142. This indicated that in first-half of 2013, the average value of villas increased by 11.72 per cent.
Villas prices maintained the fervour of uppish trends in the third quarter as well because in the said quarter, average price of villas flourished further.
In August, 2013, the average sale price of 3-bedroom villas was logged at Dh4,022,432 and by the end of the CY 2013, the average sale price soared to Dh4,247,560. These statistics clearly show that the previous year remained happening for the villa industry of Dubai.
Even in the first three months of 2014, 3-bedroom villas remained successful in maintaining their price surge, it added.
As per research conducted by the property experts at Bayut.com, average price of villas for March, was estimated to be Dh4,290,348, which clearly shows that the impact of winning World Expo 2020 laid positive impression on villas prices in the first quarter of 2014 as well.
In percentage terms, the overall price increase for 15 months, i.e. from January, 2013 – March, 2014 was 24.56 per cent - a jump that magnetizes various investors for injecting money in the real estate market of Dubai.
Even though, there prevail some speculations about the formation of a property bubble in the real estate market but considering the poised growth of the sector, Bayut.com expects that the real estate market of Dubai will strengthen further in the looming time.-TradeArabia News Service