Rental prices rise 24% in certain areas of Dubai
- United Arab Emirates: Sunday, December 09 - 2012 at 15:52
Residential rental prices have risen by as much as 24% in certain parts of Dubai over the past 12 months due to population growth and limited supply in highly desirable areas, according to a new report by CBRE.
"Dubai is seeing higher rental growth this year due to a sustained period of population growth, positive economic performance, increased occupier demand and limited availability of quality units in the most desirable locations," Matthew Green, head of United Arab Emirates' research at CBRE Middle East, wrote in the report.
Popular locations such as Downtown Dubai, Dubai Marina, Greens, Jumeirah Beach Residence and Palm Jumeirah have seen lease rates climb by an average of 24% year-on-year, the report added.
Sale prices have also risen sharply in the emirate, with Garden Villas on the Palm Jumeirah leading the way with a 22% rise in prices, followed by Springs and Meadows which have registered 20% and 18% growth respectively. Arabian Ranches, Meadows, Palm Jumeirah (Garden Villas), Springs and Jumeirah Islands have registered increases of 16% year-on-year, the report added.
About 36,000 apartments and single-family homes might be completed from 2013 to 2015 provided construction delays are minimal, the report said. The majority of residential supply is expected from locations such as Dubailand, while about 26% of it will be in Motor City, Dubai Sports City, Liwan and Dubailand Residences
"With supply levels becoming increasingly tight in popular community areas, further product launches are anticipated during 2013," Green said. Although investor confidence is growing, "the main focus for investors remains completed assets in established locations," he wrote.
Dubai's property sector is once again making global headlines thanks to a string of major announcements in recent weeks, including plans for developing a new district with the world's largest mall, 100 hotels and gardens larger than London's Hyde Park.
Shortly after the Mohammad Bin Rashid City was announced, Dubai said it would build five theme parks for $2.7bn.
The report said that the launch of new mega-projects in Dubai shows a clear commitment to continued infrastructure spending in the emirate, which is in line with Dubai's 2020 Expo bid and the 2030 Strategic Plan. "This is likely to have positive knock-on effects for the real estate sector and the economy as a whole," the report added.
Articles in this section are primarily provided directly by the companies appearing or PR agencies which are solely responsible for the content. The companies concerned may use the above content on their respective web sites provided they link back to http://www.ameinfo.com
Any opinions, advice, statements, offers or other information expressed in this section of the AMEinfo.com Web site are those of the authors and do not necessarily reflect the views of AME Info FZ LLC / 4C. AME Info FZ LLC / 4C is not responsible or liable for the content, accuracy or reliability of any material, advice, opinion or statement in this section of the AMEinfo.com Web site.