dubai real estate
RESIDENTIAL
RESEARCH
Summer 2013
DUBAI PRIME
RESIDENTIAL
REVIEW
Highlights
•
Prime residential prices have risen since the beginning of 2012. In 2013 the price of luxury villas have increased by 11.4% and prime apartments have risen 15.1% in value.
•
The year-on-year increase from June 2012 to June 2013 for prime residential property stands at 21.4%. The price of luxury villas picked up post January
2012, whilst the price of top-end apartments gained momentum from
September 2012 onwards.
•
Rents across the prime sector have seen a 15% rise year-on-year to June
2013, with an increasing number of corporate tenants entering the market.
•
The proposed mortgage cap announced in December 2012 has caused a flurry of activity amongst owner-occupiers, keen to purchase their homes in
Dubai before legislation is enforced.
•
Select new off plan development launches, in the more popular areas, are selling out on release.
SUMMER 2013
DUBAI PRIME
RESIDENTIAL REVIEW
Prime sales market update
Helen Tatham
Director of Residential
Knight Frank Dubai
The Dubai real estate market showed the first firm signs of recovery in early
2012 but this was not across all sectors.
“Freehold ownership of Dubai real estate for non-Gulf Cooperation Council
Nationals has now been in existence for over a decade. Since its inception in
2002, we saw a rapid rise in demand and pricing up to the peak in mid-2008 before suffering a significant decline through the global financial crisis. Now we are experiencing its revival, but with stronger foundations and with
Dubai gaining a safe-haven reputation amongst buyers from the wider region.
Rapidly-expanding finance, tourism and logistics sectors are fuelling growth in Dubai’s more tightly regulated property sector. In the last 12 months the government and private developers have implemented cooling measures to reduce the likelihood of another housing bubble. Our experience is that
RESEARCH
Summer 2013
DUBAI PRIME
RESIDENTIAL
REVIEW
Highlights
•
Prime residential prices have risen since the beginning of 2012. In 2013 the price of luxury villas have increased by 11.4% and prime apartments have risen 15.1% in value.
•
The year-on-year increase from June 2012 to June 2013 for prime residential property stands at 21.4%. The price of luxury villas picked up post January
2012, whilst the price of top-end apartments gained momentum from
September 2012 onwards.
•
Rents across the prime sector have seen a 15% rise year-on-year to June
2013, with an increasing number of corporate tenants entering the market.
•
The proposed mortgage cap announced in December 2012 has caused a flurry of activity amongst owner-occupiers, keen to purchase their homes in
Dubai before legislation is enforced.
•
Select new off plan development launches, in the more popular areas, are selling out on release.
SUMMER 2013
DUBAI PRIME
RESIDENTIAL REVIEW
Prime sales market update
Helen Tatham
Director of Residential
Knight Frank Dubai
The Dubai real estate market showed the first firm signs of recovery in early
2012 but this was not across all sectors.
“Freehold ownership of Dubai real estate for non-Gulf Cooperation Council
Nationals has now been in existence for over a decade. Since its inception in
2002, we saw a rapid rise in demand and pricing up to the peak in mid-2008 before suffering a significant decline through the global financial crisis. Now we are experiencing its revival, but with stronger foundations and with
Dubai gaining a safe-haven reputation amongst buyers from the wider region.
Rapidly-expanding finance, tourism and logistics sectors are fuelling growth in Dubai’s more tightly regulated property sector. In the last 12 months the government and private developers have implemented cooling measures to reduce the likelihood of another housing bubble. Our experience is that