Property construction up in Dubai

New research reveals that the number of homes built in Dubai during the first nine months of 2013 is up by 50 per cent on the same time last year.

According to Jones Lang La Salle, the construction of 9,000 new homes have been completed since the start of this year, further evidence that consumer confidence is fast returning to the emirate’s property market.

“An increasing number of residential projects are currently being delivered as developers are taking advantage of the positive market sentiment to re-start previous stalled developments or hand over new ones,” the report stated.

The research also found that apartment prices climbed by 15 per cent year-on-year, with lower priced properties out performing properties at the higher end of the market. However, in spite of the recent increases, apartment prices remain 19 per cent below their 2008 peak.

What’s more, despite the recent rises, Jones Lang La Salle are confident that the emirate is not facing a property bubble.

Alan Robertson, CEO of Jones Lang LaSalle MENA (Middle East and North Africa), said: “While there has been concern over the possibility of another residential property bubble, we believe these concerns are limited.

“The broad based recovery in the residential sector is resulting in price and rent increases across most areas.”

Article published 14th October 2013