The impressive sale prices further accentuate the fact that the Dubai property market is rapidly recovering from the financial crisis.
- Villa prices are 14% higher than they were in 2008
- The price of villas have increased by 23% in the past 12 months
- House prices over the past year have risen by an average of 14%
The financial crisis of 2008 had a dramatic impact on the world, not just the countries that suffered a recession and economic downturn. However, whilst many countries and cities are still suffering four years after the crisis, 2012 has seen Dubai make a rapid recovery with the property market back on track and tourism numbers on the up.
Although the concept of prices returning to their 2008 levels seems practically impossible in some countries, certain property types in Dubai have now seen their prices rise to a figure higher than they were in 2008.
According to the latest market report Jones Lang LaSalle (JLL) based on the third quarter of the year, house prices for villas have risen by such a great amount over the past three months that they are now 14 percent higher than they were at the start of 2008. The sheer demand for villas in the emirate has seen the price of the properties rise by 23 percent over the past year alone.
The price of apartments has also increased over the past year by four percent with the report outlining that house prices increased by an average of 14 percent over the past 12 months with rents also increasing by an average of seven percent.
Alan Robertson, Chief Executive of JLL Middle East and North Africa (MENA) commented: “Market sentiment is definitely improving and both Dubai and Abu Dhabi remain major drivers in the regional real estate market, but we are continuing to move away from one holistic model.
“As the market continues to mature we will see more divergence. Well managed, high quality assets in prime locations will continue to perform whilst those in secondary locations will need to be ever more creative to attract and retain tenants who now have ever more choice and are moving with their feet to source and find the best deals available.”
As well the impressive house prices, Dubai has also seen an increase in rents and transaction numbers further highlighting the fact that it is a safe-haven for investors.