REIDIN’s latest residential property price index for Dubai has revealed a monthly increase in property values. Real-estate prices in Dubai were 0.5% higher in August than they were in July suggesting the Emirate has turned a corner to reach a significant milestone.
Following the dramatic price correction caused by the global financial crisis, Dubai’s property market matured to become more segmented, comparable to established cities like New York, London or Paris. Fluctuations in Dubai’s real-estate values began to depend on ‘real demand’ dictated by the quality and desirability of certain properties within different districts.
As a result, Dubai’s property prices haven’t moved in a uniform direction for three years, with some hot spots like Dubai Marina and Downtown experiencing growth while less desirable areas have continued to witness price declines. The Gulf news recently reported on how Dubai Marina and Downtown Dubai were ‘bucking the trend’ by gaining high rental demand due to the two districts exclusivity which then pushed up prices.
However the latest data from REIDIN, a world leading real estate information company, has found that prices have now risen across the board. More importantly, this price increase has been recorded in Dubai’s quietest month, which usually sees price declines due to minimal levels of tourism and Ramadan which dominates the entire month.
This is a significant point in Dubai’s road to recovery. The Emirate’s economy is already expected to grow at a much faster rate than the major European nations or the USA this year according to the IMF, but with the added boost now predicted from a growing property market, Dubai is very well placed.
This news has caught the attention of property investors worldwide who now have the security of knowing prices have not only hit the bottom, but values are already on the increase.
Source: The International Business Times, Gulf News