Top-end Dubai villa prices rose by up to 38%

Villas in Springs, Palm see most growth; apartment prices up by 14% in 2012 - Asteco

Luxury villa prices in Dubai soared by an average of 23 percent year-on-year in the fourth quarter of 2012, while top-end apartment prices rose 14 percent in the same period, the highest increases since the boom era of 2008, a new report claimed.

“The latter half of 2012 witnessed a better-than-anticipated performance in terms of pricing, transaction activity and occupancy as well as new real estate launches,” said John Stevens, managing director, Asteco Property Management.

The area which saw the biggest villa price increases was The Springs, where prices increased 38 percent to an average of AED9,700 (US$2,640) per sqm. In second place was Jumeirah Islands, where prices were up 28 percent to an average of AED12,400 per sqm, while Arabian Ranches saw values jump 27 percent to an average of AED10,250 per sqm.

Palm Jumeirah was the main winner in terms of apartment price increases, with average price tags up 27 percent to an average of AED15,100 per sqm. Second was The Greens, up 23 percent to an average of AED10,250 per sqm, followed by Downtown Dubai, which saw an 18 percent average boost to AED14,000 per sqm.

Soaring prices have “put the average annual increases at their highest since 2008,” the Asteco report observed.

The rental market also saw a boost, with average apartment leases rising the most in Discovery Gardens, where annual costs rose 23 percent to an average of AED45,000 for a one-bedroom unit.

Downtown Dubai also rose 23 percent but a one-bedroom apartment cost an average of AED80,000 per annum. International City lagged behind but still saw prices rise six percent to an average of AED24,000 for a one-bedroom flat. The average rental rate increase across the study period was 17 percent.

“If demand continues, we expect to see a shift in the market from being predominantly tenant-led to one controlled by landlords, especially in quality, well managed and established developments,” added Stevens.

According to data from real estate intelligence provider, the sale of a 14,349 sqft apartment in Dubai Marina’s Le Reve Tower for AED34.7m (US$9.4m) was the most expensive real estate transaction in the emirate last year.

The apartment was one of four properties in the luxury apartment block to rank among the emirate’s most expensive real estate sales in 2012, the website said.

Join the Discussion

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

NOTE: Comments posted on may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Forgotten fees: the challenge of investing in Dubai property

Forgotten fees: the challenge of investing in Dubai property

Investors attracted to low service charges at some Dubai residential...

Dubai real estate: which way will it go?

Dubai real estate: which way will it go?

In this special report, Arabian Business analyses the state of...

Diving for answers: What's happened to Dubai Pearl?

Diving for answers: What's happened to Dubai Pearl?

The mysterious inability of a $6bn mega-project on prime land...

Most Discussed
  • 3
    UAE landlords set to get tougher on rental cheques

    Erm, what real estate recovery are they talking about? Expected by who exactly? One minute rents are dropping now they're rising? I don't think it's a... more

    Tuesday, 28 February 2017 1:23 PM - Mr. Abc
  • 2
    Dubai residents appeal to fix 'roundabout of doom'

    These 2 roundabouts (Arabian Ranches/Motor City & Studio City) are mostly choked and always dangerous, because of Schools, Offices and fast growing Residential... more

    Tuesday, 28 February 2017 1:22 PM - Anon
  • 2
    UAE salaries expected to rise, report says

    Nowadays people are struggling to secure a job in market and they are accepting offer which is less from their current package there is no chance of salary... more

    Tuesday, 28 February 2017 1:21 PM - Daljit Singh