While property prices in Dubai have recorded robust growth in the last 12 months, they are still lower than during the 2008 boom, revealed a report from consultancy Asteco.
Specifically, sale prices of villas and apartments soared 26 percent and 42 percent respectively, while rents jumped 19 percent and 39 percent from last year.
But they still lag behind the average prices seen in Q3 2008, with villa and apartment rents lagging by 31 percent and 38 percent respectively. Average sale prices of property were also down 42 percent.
The report noted that while prices are expected to rise, they will remain lower than the 2008 peak levels in the short- to mid-term.
The resurgence in transactional activity which has led to higher sales and rental prices is attributed to political stability, a diversified economy, trade links, regulatory infrastructure and an attractive tax environment.
The report also revealed that apartment sales prices in Jumeirah Lake Towers and Discovery Gardens soared by 46 percent and 75 percent respectively. Nonetheless, prices at Jumeirah Beach Residence and Greens were 32 percent and 33 percent below their 2008 peak.
The Springs posted the best rental rates for villas, reporting a 34 percent increase. This was followed by Mirdif, up 31 percent.
John Stevens, Managing Director at Asteco property management, said: “Recovery is well underway with a year-on-year average rental growth.”
“We expect rental growth to continue as economic improvements fuel internal demand as well as result in new arrivals.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org