Dubai house prices rise for 16th straight month

New Deutsche Bank report says prices still well below peaks seen back in 2008

Dubai real estate prices and rents rose for the 16th consecutive month in March, continuing the steady recovery in the sector, according to a new report by Deutsche Bank.

Property prices increased by 1.5 percent from February to March with price increases recorded across most areas, while prices and rental values remain significantly below their peak of 2008, the report said.

It added that apartment prices remain between 43-61 percent below peak with villa prices between 12-49 percent below. Rental values show similar trends, Deutsche Bank added.

The March figures take the year-to-date growth in property prices to over 6.2 percent, the report noted.

Despite this recovery, the shares of real estate developers trade at a discount to emerging markets and world developers, according to the report.

Deutsche Bank said the growth in prices and investor confidence continues despite increased supply.

Since the second half of 2011, Dubai has witnessed an increase in project launches by master developers such as Emaar, Nakheel and Damac.

Nakheel has restarted various projects while Emaar recently pre-sold four projects with over 1,000 units sold overnight with prime units selling at a 40 percent premium to market prices reflecting trends seen around the world.

Emaar has now announced another project in Downtown Dubai which went on sale this week.

Commenting in the report, research analyst Athmane Benzerroug said: "The price recovery that started in late 2011 in prime properties is now spreading to second tier communities.

"Despite new supply, investor confidence remains strong, while main master developers are accelerating project launches."

Despite the growing confidence in the market and the 1.9 percent increase in share prices seen in March, UAE developers continue to trade at a discount to emerging markets and global developers.

Benzerroug added: "On a price to book value and a price to earnings multiple, UAE developers trade at a discount to emerging markets and international developers. UAE developers are trading at a 0.6x 2013 price to book value versus 1.0x for emerging markets and 1.4x for world developers."

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Posted by: Sami razek

Well on a more positive note from previous posters:

Discovery gardens 1 beds were being sold at 350 18 months ago and we have sold a number at 600 in the last two months, and they are still rising....

18 months ago we had some 2 beds on the palm that were at about 1.7, we have sold 3 for 2.7, 3.1 and 3.2 million in the last month.

In December 2010 we were offer 600aed psf for commercial space in JLT, sold everything at 1100 aed net, in March.

Marina apartments we were holding one and rejected an offer of 3 million aed and sold for 4.75 million at the start of this month.

We are forced exiting, and these were sales that are still maybe 40-60% below peak (so its not great news) but to be fair the growth is obvious and ongoing.

Not showboating and you can decide if this is genuine or not, but the market is in a positive growth cycle and I believe subject to no major screw ups, I feel there maybe more then 100% upswing in the next 24-36 months.

Obviously do your own research- Sami

Posted by: Well wisher

Is it a screw-up , hell yes! give me a statistics of number of "real investors" entered Dubai ? very low!! And btw who is going to buy a property which costed 350 18 months ago now to 600 ?

Posted by: Mohammed Nadeem Ahmed

I always call Dubai as a miracle city what they have done in past in a very limited time is a miracle the prices of Dubai land have gone well above what they have anticipated and then we have seen the fall now since last June same trend have came back and it looks that investors have not learn there lesson in past what amazed me that the money flow is so fast and the prices are rising with a fast pace on certain area . Dubai have not done any changes in the policies but still the market is booming in my opinion it is another bubble building very fast and bust by end of this fall if not early and we will see again the victims who have bought to flip. Unless gov get involve and stop the flipping some how this market will stay un-predictable market and end user will always in a fear of left alone.

Posted by: stephen

A total of seven colleagues, friends/associates have their properties for sale in Arabian Ranches and The Meadows. Each placed their respective homes on the market, through agents, at their suggested guide prices, all between 3 and 4 months ago. To date, not one has been sold, although I believe three have offers at between 11% and 14% below the asking price.

The subject is too tedious to argue about for long and unfortunately these pages attempt to turn the issue into a science. However, these simple, real life examples indicate that there is simply not enough evidence around to make bold statements such as the headline in this piece and all the other unreferenced and unsubstantiated pieces of sales patter dressed as research that we witness on a near weekly basis.

Posted by: adnan dada

It is a mirage in the desert! There is no price recovery its just a sham: REASON BEING there are thousands of empty flats with no one living in them and the indigenous population is not increasing any time soon. Now if you said this was happening in India or Pakistan with bloody high population growth and not enough property for the people searching then I could believe it...
The poor guys stuck with their worthless properties just want to get out.

Posted by: Ali

I don't see any new buyers in the market...and the older ones are still trying to offload what they had been sitting on since 08. No buyers due to uncertain climate, govt regulations and overnight rule changes. What has changed that would make investors coming back, give me one thing that will rebound the property market or appreciate it's value...the govt has not done enough to ally fears that if will not take harsh overnight decisions that hurt the small or medium investor.

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