Dubai villa prices rise up to 30% in 2012

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(AFP/Getty Images)

(AFP/Getty Images)

Dubai's real estate sector recorded price increases of up to 30 percent in prime locations during 2012, according to Hamptons MENA.

The Hamptons MENA 2012 property report said that on average property prices increased by 20 percent across the market, while well-established neighbourhoods such as Downtown Dubai and The Palm Jumeirah witnessed an upward trend in price of up to 30 percent.

The most significant price increase was noted for villas, such as in Arabian Ranches, the masterplanned community by Emaar Properties, which led the growth in values during the year.

Hamptons said high-end apartments in Downtown Dubai and Emirates Living also reported strong price appreciation.

Niraj Masand, head of operations of Hamptons MENA, said: "The strong performance of the residential property market in 2012 is a reflection on Dubai's sound economic fundamentals.

"Led by the robust performance of its traditional growth sectors including retail, tourism, aviation, hospitality and trade, Dubai has established its position as the region's business and tourism hub.

"This had a positive impact on the property sector too, with the established communities in Dubai witnessing price increases of up to 30 percent."

He added that with several new mega projects being launched including Mohammed Bin Rashid City, Dubai's property sector was "poised for stronger growth in 2013".

Hamptons said it has seen strong customer interest both in buying and leasing activity in the established neighbourhoods in Dubai during 2012.

It said the value of transactions facilitated by Hamptons MENA during 2012 rose by over 16 percent compared to 2011.

The most significant demand came from Downtown Dubai and Dubai Marina with more than 7,500 sales and leasing enquiries in 2012. 

Hamptons said the average size of properties bought was 1,320 sq ft compared with 1,722 sq ft in 2011, indicating more small-size families showing their interest in property investment.

Hamptons added that it expects that demand for apartments in Downtown Dubai and Dubai Marina to increase in the coming months, based on this trend.

"Although, the overall market is still seller-oriented, the positive growth of the economy is expected to further boost demand, especially with individuals looking to move into bigger properties by cashing in on the current market sentiment," the report said.

Earlier this week, Emirates Banks Association (EBA) chairman Abdul Aziz Al Ghurair said UAE property values have returned to their pre-crisis levels and in many cases have climbed higher.

Real estate prices started to rebound last year after Dubai suffered one of the world’s worst property market crashes following the 2008-09 credit crisis.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Red Snappa

Just out of interest isn't Hamptons MENA, a wholly owned subsidiary of Emaar Properties, which in turn is 32% owned by the Dubai government.

Therefore, hardly an independent assessment of rises in prices across the board. I would say Emaar's developments have fared the best in terms of price recovery, no doubt, but I would question the level of increase on the Palm Jumeirah, given all the adverse publicity that has negated the lifestyle element, generated by the master developer's actions there!

There are also still massive pockets of new Dubai property that are not doing nearly as well, and there are still any number of villas and apartments yet to be delivered, if ever, leaving their good faith buyers standing out in the rain, figuratively speaking that is, before we start crowing about how wonderful the property market is these days.

Posted by: Desert King

The recovery for Dubai real estate is very strong and real, more than any people?s imagination, but from the point of investment view, it is less attraction now in 2013 compared that it was in 2012 and 2011, the net ROI of apartment is low at 4% in down town area, it does make no sense for investors, there are better option in London,
But the return of investment for the service apartments (the address) is high at 10%! More and more new developments are launched for serviced apartment, this may create another bubble

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Time to invest?

Time to invest?

Foreign investors are seeing Qatar as an ideal place to purchase...

Heading for a correction?

Heading for a correction?

Property prices may have held relatively steady in Lebanon during...

Emaar's 'city of the future' explained

Emaar's 'city of the future' explained

The Iraqi city of Erbil is aiming to build on Dubai’s rapid march...

Most Discussed
  • 10
    UAE father who whipped son to death wins appeal

    "Under Sharia, a parent cannot be executed for killing their child"
    A spouse could be executed if he/she kills his/her spouse, as none of them is... more

    Friday, 18 April 2014 3:38 PM - Nihar
  • 3
    To diet or not to diet?

    It is best to eat by your blood type. Following this diet is miraculous. Generic diets don't always work as certain foods are not good for the individual... more

    Friday, 18 April 2014 11:49 AM - Shamira Mitha
  • 2
    Saudi conservatives stage rare protest against Westernisation

    While one certainly appreciates a country to retain its own culture and heritage, one might call the current status in Saudi something like "stoneage"... more

    Saturday, 19 April 2014 1:51 AM - Non-Muslim
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams