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Dubai Residential Market to See Slower Growth in 2014
Dubai:Dubai real estate market is witnessing an average growth of 50 and 60 percent across residential apartments and villas in terms of prices.
Apartment Rentals Up
The rental rates of apartments jumped by almost 50 per cent while villa rents rose only 20 percent according to sources. In terms of sales a 60 percent hike in prices in prime residential developments has been noticed that is still 21 percent lower than 2008 peak price levels.
It is expected that the New Year 2014 will take Dubai’s real estate market to the world’s top performer market level leveraging the rapid price growth registered in the previous year. Therefore a price growth between 10 and 15 percent is considered a modest expectation in 2014. This will be putting Dubai realty market quite ahead of other Asian markets. The sales prices of Dubai apartments and villas jumped 23 per cent in the last quarter of 2013.
The ongoing renewal and recovery in Dubai real estate also endorses the rising confidence among the investors and the impact of a new regulatory steps including the diktat of maximum loan-to-values despite the presence of cash buyers.
Investors are entering the market as rental rates are up indicating better returns and capital appreciation. The villa sales in Palm Jumeirah jumped 67 per cent and Jumeirah Village Circle rose 55 percent. In other freehold markets growth has been 22 percent to 30 percent. In apartment sales, Discovery Gardens clocked an upsurge of 83 per followed by Dubai Marina with 81 per cent and Downtown Dubai at 69 percent increase based on per square foot metric.
The guidance for those looking for Properties for buy and rent in Dubai will be as following. Expectation is that 2014 will see the reaffirmation of trends posted in 2013 persisting with sales prices rising at a slower pace for the reason that 25,000 residential units in the new housing stock. In the residential leasing market the average prices are surging significantly. It is 22 percent for apartments and 6 percent in villas according to the indicators available from 2013 final quarter statistics. In any case, the rental growth in Dubai will remain unabated as it is driven by Dubai’s winning Expo 2020 and an expanding economy.
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