Dubai property sale prices have jumped more than 10 percent this year in several communities, while rents are rising at a slower pace, new statistics show.
Jumeirah Lakes Towers, Dubai Marina and Palm Jumeirah all showed strong sales growth for apartments, with average advertised sale prices rising by at least AED50,000 ($13,600) in the first three months of the year compared to the last quarter of 2012, according to the website Dubizzle.
Meanwhile, average advertised rents were flat in most areas, although Downtown Dubai and Palm Jumeirah recorded large increases.
Dubizzle spokesperson Ann Boothello said the successful launch of several new developments in Dubai had helped to boost confidence in the buyers’ market, causing sale prices to go up across the board.
“Trusted developers like Emaar properties have launched several new projects in the last six months, most of which received a high response from investors, causing a chain reaction whereby other properties too increased in prices as owners gained confidence that there would be a growing demand for their properties,” Boothello said.
Increased demand from both end-users and investors also had helped to push up prices, she said.
Meanwhile, some wealthier property owners were attempting to take advantage of the high rental yields by moving out of their homes and putting it on the rental market.
“It is clear that rental prices are seeing increases as well, some areas more than others based on demand,” Boothello said.
JLT performed exceptionally well during the first quarter, according to the Dubizzle figures. One-bedroom apartments shot up on average 10 percent to AED880,000, while two-bedroom apartments rose 7 percent to AED1.5m, making the relatively new area one of the most expensive in the emirate for apartments.
One and two-bed apartments in Dubai Marina - the third most expensive area for apartments - rose 9 percent and 7 percent, respectively, to AED1.2m and AED1.92m.
Meanwhile, average rents in the same area remained stable at AED80,000 per year for a one-bed and AED120,000 for a two-bed.
On the Palm Jumeirah, two-bed apartments were more sought after than one-bed, with the average advertised sale price of a two-bed climbing 10 percent to AED2.85m and rents putting on 7 percent to AED160,000.
The average sale price of a one-bed apartment on the Palm surpassed AED2m, up from AED1.5m in Q4 2012. Rents rose 4 percent to AED130,000.
Downtown Dubai – one of the most expensive areas alongside Palm Jumeirah – struggled to increase the sale price of apartments, while rents rose significantly.
The average sale price of a one-bed apartment rose 3 percent to AED1.6m, while rents did better, putting on 11 percent to an average AED100,000.
Two-bed apartments recorded no change in the average advertised sale price of AED3m – the highest in the emirate – but rents climbed by 7 percent to AED150,000.
The Greens and The Views also showed rising popularity among buyers, with two-bed apartment sale prices rising 9 percent to AED1.7m, making the area the fourth most expensive.
Villas recorded little growth across Dubai, with Springs/Meadows and Arabian Ranches performing the best with 4 percent increases in rental prices.
Rents on Jumeirah Islands also rose 2 percent, while Palm Jumeirah recorded no growth and Jumeirah Park prices fell 2 percent to AED245,000.
Jumeirah Village Circle performed the best for sales, putting on an average 11 percent to take prices to AED2.1m for the first time.
Other notable rises were in Jumeirah Park (up 7 percent to AED4.82m), Palm Jumeirah (up 5 percent to AED11.5m), Jumeirah Island (up 4 percent to AED7.2m) and Arabian Ranches (up 4 percent to AED4.7m).
Dubizzle data is based on the advertised price of more than AED132bn worth of property posted on the website during the first quarter of 2013.