Property prices in Dubai have risen by more than 22 percent so far this year, according to the REIDIN.com Sales Price Indices. Dubai property prices show annual rise of percent 22.4…
Property prices in Dubai have risen by more than 22 percent so far this year, according to the REIDIN.com Sales Price Indices.
The index, which aims to measure the average change in house prices in certain districts and communities in Dubai, showed real estate values in Dubai rose 2.44 percent in November compared to the previous month.
On an annual basis, REIDIN said prices have increased 22.4 percent.
Apartment sales prices registered an increase in November of 2.90 percent month-on-month and were up by 24.5 percent on an annual basis, the index showed.
Villa sales prices registered an increase of 0.73 percent compared to the previous month and were 14.9 percent higher than in November 2012.
The REIDIN rental index showed Dubai rents rose 1.33 percent in November and were up by 16.6 percent compared to the year-earlier period.
Apartment rents showed an increase of 1.37 percent month-on-month and 17.6 percent year-on-year while villa rents rose by 1.11 percent and 12.6 percent respectively.
In Abu Dhabi, the index showed prices rose by 1.96 percent in November compared to October and were up by 19.70 percent on an annual basis.
Apartment sales prices registered an increase of 1.77 percent in November and 21 percent compared to November 2012 while villa prices rose 2.04 percent and 16.50 percent respectively.
Rental values in the UAE capital also rose in November by 0.88 percent, resulting in a 3.70 percent on an annual basis, REIDIN said.
Apartment rents increased 1.73 percent in November and by nine percent compared to November 2012 while villa rents increased 0.63 percent and 4.60 percent respectively.
The recent increase in prices in Dubai has sparked fears of another price bubble being created.
But last month, Mohamed Alabbar, chairman of Dubai’s biggest developer Emaar, said the government will not allow “unjustifiable” rent increases to fuel a new price bubble on the back of the emirate’s Expo 2020 win.
Concerns have been voiced that the Expo victory could cause property developers to build too many residential and commercial projects, and investors to pour too much money into them, inflating a speculative bubble that would eventually burst.
Such a bubble popped in 2008-2010, when the global financial crisis caused Dubai property prices to crash by more than 50 percent, shaking financial markets around the world.
Earlier this month, Knight Frank said Dubai’s real estate market is forecast to be the world’s top performer in 2014, building on this year’s rapid price growth.
The property consultancy’s Prime Global Forecast predicted price growth of between 10-15 percent next year, ahead of Asian powerhouse markets such as Beijing and Shanghai.
Sydney and Paris rounded out the top five markets for 2014 with predictions of up to 10 percent growth, the report showed.