Most sought after properties in Dubai up 30% in 2012
Properties in the best locations in Dubai saw prices rising by up to 30% last year, especially villas, according to the latest annual real estate report from Hamptons MENA. The international property services company found that on average property prices increased by 20% to 30% across the market, while well established neighbourhoods such as Downtown Dubai and The Palm Jumeirah witnessed an upward trend in price to the range of 30%.
The most significant price increase was noted for villas, such as in Arabian Ranches, the master planned community by Emaar Properties, which led the growth in values during the year. High end apartments in Downtown Dubai and Emirates Living also reported price appreciation, highlighting the growing investor confidence led by a buoyant market.
‘The strong performance of the residential property market in 2012 is a reflection on Dubai’s sound economic fundamentals. Led by the robust performance of its traditional growth sectors including retail, tourism, aviation, hospitality and trade, Dubai has established its position as the region’s business and tourism hub. This had a positive impact on the property sector,’ said Niraj Masand, head of operations of Hamptons MENA.
‘With several new projects being launched including Mohammed Bin Rashid City, the largest development of its kind in the region, and several developments announced by leading developers, Dubai’s property sector is poised for stronger growth in 2013. In this, established communities with a wide range of lifestyle amenities will continue to take the lead position. The current market environment, with Dubai’s status as a safe haven, is ideal for investing in property, both residential and commercial,’ he added.
Quote from PropertyCommunity.com : “Talks are to take place over the next few months about proposals to limit mortgages for foreign buyers in the United Arab Emirates, it has been confirmed.”
Hamptons reported strong customer interest both in buying and leasing activity in the established neighbourhoods in Dubai during 2012. Investors, buy to let customers and owner occupiers recorded positive interest with the total value of transactions facilitated by Hamptons MENA during 2012 recording an increase of over 16% compared to 2011. The most significant demand came from Downtown Dubai and Dubai Marina with more than 7,500 sales and leasing enquiries in 2012. The other neighbourhoods which recorded solid investor response include: Emirates Living, Arabian Ranches, Jumeirah Lakes Towers and The Palm Jumeirah.
The average size of properties bought was 1,320 square feet compared with 1,722 square feet in 2011, indicating more small size families showing their interest in property investment. Hamptons MENA expects that demand for apartments in Downtown Dubai and Dubai Marina is set to increase in the coming months, based on this trend. The driving force of demand was the overall infrastructure supporting the development as well as the availability of various lifestyle amenities, the firm said. Locations close to Dubai Metro maintained their demand during the year, for both sales and leasing, recording gains in capital and rental values.
Recreational facilities have also become much sought after with developments featuring amenities such as swimming pools, access to park or beach and health and fitness facilities recording good investor response. The report also shows that the robust outlook of the property market is further highlighted by several projects especially in Dubailand, Jumeirah Lake Towers and Business Bay being resumed. Tanmia, the Dubai Land Department’s initiative, has helped restart a number of previously stalled projects in Dubai.
While the overall market is still seller oriented, the positive growth of the economy is expected to further boost demand, especially with individuals looking to move into bigger properties by cashing in on the current market sentiment. It concludes that the growth in business in Dubai is another strong driver of growth. The increase in the number of trade licences issued by the Dubai Department of Economic Development, some 9% more than in 2011 during the first half of the year, is a good indicator of the market dynamism.