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Despite the coming opening of a broad range of new developments, especially in Dubai Marina and Old Town/Business Bay areas, Dubai property prices continue their upward surge.
Properties at the top end of these markets can now fetch up to Dhs450,000 and Dsh300,00 in annual rental returns respectively (see charts below).
In addition, with rental inflation continuing to spiral, more and more Dubai residents are taking the leap and purchasing their own homes. The continuing availability of credit for residents has further helped to fuel the demand for newly-completed properties.
'Being a growing market, Dubai's real estate growth has been driven mainly by investors but now the influx of people and a growing population has seen an emerging trend of end users buying, with both villas and apartments proving popular,' says Manuela Reis, Head of Residential Sales at Better Homes.
This is added to the numbers of foreign investors and financial groups who are growing to recognise the Gulf as one of the few markets unaffected by the global credit squeeze - where an investment in new real estate developments brings almost certain double-digit percentage returns.
Price increases across the board
'The tremendous growth in Dubai real estate has seen all communities increase in value,' Reis confirms.
'The market has received a lot of interest from investors from all over and with demand so high, most of the properties have increased in value.'
Workers with families are at the forefront of demand for completed villas, and, with the financial boom continuing, the waiting lists grow ever longer - often developments are taken up well before completion.
'Villa communities such as the Arabian Ranches, Emirates Hills, The Lakes and The Meadows always sell well owing to the fact that they are completed, have good access, a range of retail and leisure services, local schools, parks and play areas and most importantly for some, a community feel,' says Reis.
At the top end, the most expensive villas in the Arabian Ranches sold for almost Dhs16.5m in June, while the Meadows saw a top sale of Dhs13.4m. The average sale prices for each of these communities were Dhs6.3m and Dhs8m respectively.
Areas which remain popular across the market are those which emphasise the 'Dubai Dream' of sunshine and waterfront living.
Demand for waterfront properties
'We have seen great demand for waterfront properties such as Dubai Marina, The Palm Islands, Jumeirah Beach Residence, Jumeirah Lake Towers, Jumeirah Islands and even the Green Community, which will include a lake with apartments surrounding it,' Reis adds.
Confirming this trend, one of the most expensive properties sold in June is on the Palm Jumeirah, going for a slightly over Dhs35.5m. In rental terms this is also at the top end of the spectrum.
The average annual return for landlords hovers around Dhs432,000 (Dhs885,000 at the top end of the market) for villas, and an average of Dhs190,000 (with an upper limit of Dhs450,000) for apartments.
The new commercial districts are also seeing leaps in popularity, especially with the added kudos of having regional landmarks on your doorstep, as the trend of living closer to the place of work continues - especially with the amenities catering to leisure pursuits close at hand.
'The Old Town development at Burj Dubai is another current favourite,' concludes Reis.
'With its central location alongside the world's tallest tower and its close proximity to what will be the world's largest mall, offering a range of entertainment and leisure facilities at your fingertips, it's easy to see why people are snapping up the apartments.'
Full Dubai property price tables
Dubai apartments for sale
Dubai apartments for rent
Dubai villas for sale
Dubai villas for rent
The Dubai average price index
The information contained within this report was provided by Better Homes. The index provides minimum and maximum property sales prices along with size in square feet to act as a guide to the property size. Prices are based solely on recent transactions by Better Homes in each area and should therefore be used as a guide only. Average price is determined by calculating the total value of recent sales within each area and then dividing that figure by the total number of property sales. Standard Deviation of Price is an average of the prices of sold properties minus the highest and lowest values, to give a more accurate value. This is done because prices in some areas vary so much it can skew results, so extreme values are removed and then the average is recalculated, giving a better reflection of the average price in an area.
Staff Reporter
