Property growth in Dubai slowed by 6% in Q4 of 2013, but estimates for 2014 remain high according to international property firm Knight Frank.
- Dubai property growth down 6% in Q4 of 2013
- Growth in Q4 lower than previous four quarters
- Estimates for 2014 suggest growth of up to 15%
Estimates for the level of property growth in Dubai have slowed by 6% according to the latest analysis, although increases of 15% are still predicted for 2014.
International property firm Knight Frank suggested a cooling of the market in the final quarter of 2013, when growth for apartments and villas was both down.
While prices grew by 15% year-on-year in Q4, it was still some way below the 21% levels seen during the previous four quarters.
A number of cooling measures were introduced in the second half of 2013, including the doubling of the transfer fee to 4% and new mortgage caps.
However, the Expo 2020 event is set to boost Dubai property sales, with a number of developers announcing large residential mega projects.
New units worth AED10 million or more are expected to account for 10% of existing stock in 2014 despite nearly all of these being located on a single development.
Knight Frank estimates that this figure will drop to 1.6% in 2015 before rising to 4.6% in 2016.
Victoria Garrett, Residential Associate Director at the company, said:
“Going forward, we think that prices could rise by 10 to 15% this year, with the differential between prime apartment and villa prices closing as the former outperforms.”