Dubai: Property prices in Dubai have risen as much as 7 per cent in some areas feeding off the Expo possibilities.
Dubai’s rental market experienced moderate increases of up to 10 per cent in asking prices for affordable apartments, while luxury apartments recorded substantial upticks of up to 31 per cent. The affordable villas in Dubai have seen a general increase under 14 per cent in rental rates in the third quarter, while the luxury segment has observed growth between 2 per cent to 14 per cent in asking rents.
Tenants on a limited budget have shown an inclination for Jumeirah Village Circle (JVC), Al Nahda for apartments and Mirdif and Akoya Oxygen for villas. Dubai Marina and Downtown Dubai have captured the attention of tenants looking for upscale flats while Jumeirah and Al Barsha have been the most preferred areas for high-income renters looking for luxurious villas.
Real estate boom
A report from Bayut and Dubizzle showed that properties for sale in Dubai have experienced upticks in price between 1 per cent and 7 per cent in the third quarter. “Dubai’s real estate sector continues to grow on an impressive trajectory in the third quarter of the year, with a healthy appreciation in sales and rental prices across most popular neighbourhoods,” says the report. “The global interest in Dubai as a result of the Expo 2020 has also trickled down into the city’s real estate market.”
Prospective buyers have focused their interests on properties in Jumeirah Village Circle (JVC), Akoya Oxygen, Jumeirah Lake Towers and Dubailand for reasonably-priced villas and apartments, while high-net-worth investors have preferred well-integrated communities such as Dubai Marina, Downtown Dubai and Arabian Ranches. The relatively new gated suburb of Dubai Hills Estate also retained its popularity during the third quarter.
Based on the data released by the Dubai Land Department, 10,164 sales transactions for residential properties worth Dh26.1 billion have been recorded in Dubai during the months of July and August. These two months recorded the best ever third quarter figures in the past 12 years. “This could be as a result of the recent changes to long-term visa policies and the growing demand from end-users looking to upgrade their homes,” said the report.