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Tue 10 Sep 2013 08:07 AM

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Revealed: Dubai leads the way as 2013’s best performing property market

European countries trailed at the bottom as some of the worst performers

Revealed: Dubai leads the way as 2013’s best performing property market

House prices around the world rose 2.4 percent in the second quarter of 2013, with Dubai storming ahead and leading the pack with a 5 percent quarterly increase a surge of 21.7 percent year-on-year in the last twelve months, according to the latest figures by London-based real estate firm Knight Frank.

The latest Knight Frank’s Global House Price Index found prices rose in 37 of the 55 countries surveyed in the second quarter of 2013. This compares to 27 two years earlier and points to an improving global picture, the report said.

Dubai leads the annual rankings, recording price growth of 21.7 percent in the year to the end of June. The emirate’s housing market has gained momentum since late 2012, while its prime market led the way, mainstream prices are now following suit, the index found.

For the first time since 2010, European countries recorded positive annual price growth. However, the average 0.7 percent uplift over the past 12 months masks a sharp divergence in performance between individual countries with Turkey the strongest performer (up by 12.2 percent) and Greece the weakest (down by 11.5 percent) year-on-year.

Last month it was revealed land and property sales in Dubai have skyrocketed by 67 percent in a year with $6.26bn of transactions made to the end of July, figures show.

Official data from the Dubai Land Department, covering real estate transactions in the emirate, also showed a similar boon in mortgages over the same period of time.

Real estate agents say residents are increasingly looking to buy their own property as they cash in on an “under-priced” market while shunning rising rents.

An analysis of the Land Department data by Arabian Business showed property sales totalled $6.26bn between January and the end of July this year, up from $3.74bn for the same period last year.

For real estate sales, the data pointed to the number of transactions increasing from 1922, or 275 a month, last year to 3012, or 430 a month this year.

Mortgage transactions jumped from 1632, or 233 a month, to 2385, or 340 a month.

The upward trend looks set to continue with sales figures for this month at $498m, compared to $239.5m last August.

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Waqas Ali Abbas 6 years ago

Alhamdoulillah this is good news. We had faith in Dubai and its visionary leader and we knew that the market will turn round as Dubai is one of a kind. I have no regret to invest in Dubai and advic e those who can to invest as well .

Al Joispa 6 years ago

Just because you own some property here and benefiting from this illogical hike in prices doesn't make it good for everyone... with salaries where they've been or even lower since the financial hiccups, coupled with rising prices and other inflationary pressures Dubai becomes the least attractive place to live and sooner or later it'll bubble up and then burst again... Living here is becoming a very difficult situation and I'm talking for professionals with families... add in the cost of education and health and you're toast...

savio 6 years ago

Its a great news for Dubai but hopefully people will learn with their past mistakes...but usually they have short memory. I hope and wish as common sense and for the good of Dubai that the government frooze for at least 2 years any news project and ask any contractor to finish existing project. Then Dubai will not look as a construction site . When those projects ( Jumeirah golf estate,building sheikh zayed, Dubai land., Al barsha....) will be completed and sold/occupied then new projects should be approved...I guess everyone will agree with that.... It will be the best thing that could happen to Dubai!

Jared 6 years ago

It sounds like there is a real controversy about buying housing in Dubai. A lot of things definitely need to be looked at.