Cluttons in Dubai - Consumer confidence returns to the residential property market

The overall price stability across the Emirate and some price rises noted in specific areas.

Apartments in Dubai have increased in value an average 4.9% since the beginning of 2012 and Cluttons predicts a continuation of this trend towards the end of the year.

In addition, apartment s note that averages can be rental values have increased 6.8% in Dubai. However, Cluttons doemisleading, as there were areas in the Emirate did not see any growth. end villas rose from Dhs1,100 per square foot in January to Dhs1,300 -Average sales for high have risen from Dhs550 per per square foot in September 2012, whereas mid range villas square foot to 650 square foot in the same period. Mid range villas have also witnessed a rise in sales price from just under Dhs750 per square foot in January to nearly Dhs900 per square ons notes that villa prices now match spring prices 2007. foot in September of this year. Clutt

According to the Dubai Land Department, Dubai property transactions grew 21% to Dhs63bn ($17.15bn) in the first half of 2012, compared to Q3 and Q4 2011. Cluttons can that internal valuation instructions for both villas and apartments have increased also confirm some 23% since Q4 2011 and 50% of these represent mortgages of new property acquisitions.

Cluttons has also found that a new factor has quickly begun to affect popularity and prices this past year, which is proximity to metro stations. The metro transport link has now established itself as a substantial variable, which drives an individual's decision when short-listing property. The majority of areas close to the metro stations have maintained their demand and in most cases have increased in both capital and rental values.

Dubai's strengthening property market is a reflection of the UAE's improving economic Report, GCC 2020, Dubai's performance. According to a recent Merrill Lynch Global Research diversification model has the right mix to accelerate growth.

The report finds that Dubai's superior infrastructure investment and robust population growth has established solid as a regional financial, transport ely viewed foundations for future economic growth.

Dubai is widand logistical hub, placing it in an excellent position to benefit from regional growth.

According to Dubai government published figures, foreign investors buying real estate were responsible for acquisitions of Dhs28.3bn ($7.7bn) in the first half of 2012, up 36% from the same period last year. In addition, trade license applications were up 9% in July 2012 compared to the same monthly period in 2011, according to the Department of Economic Development, giving a strong indication of improved business confidence in the Emirate.

Cluttons predicts that prices will remain relatively stable over the next 12 months, as the 24,000 residential units scheduled to be delivered in the second half of 2012 will bring a large stock of supply onto the market making huge price uplifts or a 'boom' scenario unlikely.

Cluttons LLP is an independent partnership of chartered surveyors founded in 1765. With a network of offices in the UK, Europe, Middle East and South Africa, Cluttons LLP offers a wide range of professional property management, agency and consultancy services across the commercial and residential sectors, for both investors and occupiers.