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

  • Share via facebook
  • Tweet this
  • Bookmark and Share

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 Reidin.com, 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.

Related:
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

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

2
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew