This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A Gulf Business Report Reveals Dubai Property Prices Increased Up To 24% Over The Past Year In Residential Villas And Apartments

DUBAI, UAE, August 5, 2012 /PRNewswire/ --

The Dubai property sector is showing strong signs of recovery following the 2008/2009 crash that hit Dubai investors during the international financial crisis. Citing a report from property management company Asteco, Alicia Buller, Editor of gulfbusiness.com said "the real estate market in Dubai is finally showing signs of a return to positive growth, the market is indicating that these increases in property values are being driven in communities populated by expats, reinvigorating investment in the United Arab Emirates."

     (Logo: http://photos.prnewswire.com/prnh/20120730/552124 )

Emaar's Arabian Ranches is the top performer according to the report, the villas saw prices rise 24%, an increase of nearly 2,000Dhs ($544) per square meter over the comparison period in the report, which took the average second quarter sale prices in 2011 and 2012 of villas and apartments to assess the relative health of the suburbs in Dubai. The villas in the Springs (part of the Emirates Living community) and apartments in Dubai Palm Jumeirah, traditional expat communities, saw property prices 19% and 17% respectively.

Villas properties performed the best in Dubai, with six out of the top nine areas being those heavily populated with villa properties, traditionally areas where expats are able to purchase and rent properties. Outside of the top three areas listed above, the villas in Dubai, which performed well over the past year, include the Meadows, Jumeirah Islands, the Green Community and Palm Jumeirah, a Nakheel development. Although the villas on the Palm saw a smaller percentage rise than apartments at only 7.5%, these villas are at the top end of the market with an average five bedroom, 5,200Sqm villa fetching 12,000,000 AED, $3,678,000.  

"After three years of declining rates and limited sales activity, the real estate market is on the way to recovery, with established quality communities showing increases in values and higher transaction volumes," said Elaine Jones, CEO at Asteco who provided the data for the report. The apartments in Dubai are also performing, again in areas where the expat community buy and rent property, in Dubai Marina where prices rose 7.5% and in the Greens where apartment values increased by 4%.

This growth in the market is was also seen in a recent Gulf Business report on Dubai rentals, which shows an increase of 2% over the year to the end of quarter two, which further points to an emerging recovery in the real estate sector.

Properties in Dubai that are not performing well, again referring the report by Asteco which points to oversupply in areas that have not completed the development phase were Discovery Gardens, with prices falling 22% and Jumeirah Lake Towers declining 10% compared with the same period last year. Some areas remain flat, particularly apartments in DIFC and the Downtown area where a large number of properties have come on line over the past year and have affected growth of existing properties in the area.

As the year progresses, sales prices will continue to rise for quality developments, particularly villas, according to Asteco.  Elaine Jones further commented that "the number of owner-occupiers rose steadily in line with improved financed options offered by banks, which we expect to continue", with potential for further demand "from overseas buyers escaping economic woes in the Eurozone and political instability in other parts of the region."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs