One can understand people for being reluctant to mention the word recovery in the same sentence as Dubai; some commentators had presented a good case for why the emirate would never recover. However, now we are faced with mounting evidence that the recovery is firmly kicking in.
For the last 6 months we have been hearing reports of stabilising prices and rising sales. According to recently released figures villa and apartment prices grew by 16% and 9% respectively during the first six months of this year. According to property management company Asteco apartment rents grew by 10% and sale prices by 9% during the same period, while villa rents and sale prices grew by 13% and 16% respectively Asteco said.
Rents were also up on a quarterly basis according to the firm, with apartment rents up 6% in Q2 compared to Q1 and villa rents up 9% over the same period.
Elaine Jones, CEO at Asteco said of the figures:
"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. Tenants are relocating in search of value for money; one and two bedroom apartments as well as three and four bedroom villas are the preferred unit types. In terms of rates, quality well managed developments, will continue to set the pace.”
Giving predictions for the rest of the year Jones said she expects that sales prices will continue to rise for quality developments, especially villas, and that owner-occupiers will continue to take an increasing share of sales as financing opportunities become better from the banks.
"Further demand will also be evident from overseas buyers escaping economic woes in the Eurozone and political instability in other parts of the region," she said.