Dubai house prices continue to climb in Q3

Global Property Guide's Q3 report says values rose by more than 21% in the past year
Dubai house prices continue to climb in Q3
By Andy Sambidge
Sat 21 Dec 2013 11:58 AM

Dubai's real estate market has been named the world's top performer in a new house price survey compiled by the Global Property Guide.

Using inflation-adjusted figures, the survey showed prices in Dubai have risen by more than 21 percent in the year to the end of September.

It also showed that values rose by nearly 6.5 percent in Q3 alone, topping the list of 41 markets around the world.

"Dubai remains the best performer in our global house price survey for the third consecutive quarter. House prices soared by 21.37 percent during the year to Q3 2013," the survey said.

From Q3 2008 to Q3 2011, Dubai saw one of the world's worst housing crashes with house prices plunging by 53 percent, mainly due to the adverse impact of the global financial and economic meltdown.

The report added: "Then in Q2 2012, Dubai's housing market started to recover, thanks to the emirate's robust economic growth, bolstered by several other factors, including the availability of finance, the city's status as a safe haven, an exchange rate pegged to the US dollar, and improved consumer and investor confidence."

Dubai's economy is projected to expand by 4.7 percent in 2013 and by another 4.5 percent in 2014, thanks to strong wholesale and retail, transportation, manufacturing and real estate sectors, according to the emirate's Department of Economic Development (DED).

Earlier this month, a Knight Frank report showed prices in the emirate had increased by more than 28 percent since the third quarter of 2012.

The Knight Frank Global House Index said the increase compared to an average rise of 4.6 percent across the 55 markets covered worldwide.

The index showed that Dubai real estate values had jumped nearly 12 percent in the past six months and by 4.5 percent since the previous quarter.

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