Residential property prices in Dubai soared by over 30 per cent in the first half of this year, according to figures released today by a leading property company.
According to Clutton’s latest Property Report, property values rose by 30.6 per cent in the first six months of 2013. The report revealed that in the second quarter alone, the average price of a villa in the emirate rose by 21 per cent, while apartment values increased by 25.1 per cent.
According to the company, the increases come as a result of a combination of low prices tempting more renters into buying a property and an influx of expats arriving to work in the region.
“The resounding success of Dubai residential so far this year should not come as a surprise given the magnitude of the correction recorded during the bottom of the market; we are still far off the previous peak, when growth was far more unsustainable,” commented Steve Morgan, head of Cluttons Middle East.
“The acceleration in residential capital values this year has been underpinned by robust levels of job creation and a rising population, rather than being fuelled by ‘fly-buy’ dealers, as was the case in the past. We are yet to see a definite solution on the matter, although this is less concerning than in 2008, given the increased number of end-users in the market,” Morgan added.
According to the Cluttons figures, overall values remain more than 30 per cent below the peak levels recorded in 2008.