Real Estate costs in Dubai have started to rise on the back of strong demand, with costs in March increasing by 1.3% in comparison to 2020, the first annual rise since 2015, Property Monitor provided on Tuesday.
“Property prices have increased…, confirming the strong reversal of the downward trend of recent years,” the research firm said in a report.
As of March, the median cost for apartments in Dubai accounted for 888,442 dirhams ($241,882), whereas townhouses and villas were going for about 1.47 million dirhams and 3.1 million dirhams, respectively.
“The last time rates were at this level in October-November 2012 during the previous cycle, prices went on to rise for a further two years,” Property Monitor said.
Dubai’s property market had been lowered before the coronavirus pandemic, mainly because of a huge supply glut. The market hit further lowered when the global lockdown put everything on hold, but pent-up demand began to trickle out after the COVID-19 limitations relief.
Over the past various months, buyers have been snapping up ready-to-occupy units, containing villas and apartments.
The off-plan part, which still had restricted demand the previous year, is only just beginning to witness newly launched projects sold out in no time.
Ten-year high
As per the Property Monitor, whole deals in March were at a ten-year high, as the market continued to rise.
Deals of properties at the higher end of the market, those with cost prices of more than 10 million dirhams, also raised.
The previous month, a villa on Palm Jumeirah that was worth 111.25 million dirhams, went up for deals. It was later bought by a Swiss family, marking the second-highest deals on record for a residential property in Dubai.
As per Zhann Jochinke, chief operating officer at Property Monitor, costs have already risen for five consecutive months.
“Dubai’s price recovery is well underway though not uniformly spread across communities. Voll and townhouse communities have particularly emerged as hot spots with a further acceleration in prices expected over the coming months,” Jochinke said.
“Dubai’s price recovery is well underway though not uniformly spread across communities. Voll and townhouse communities have particularly emerged as hot spots with a further acceleration in prices expected over the coming months,” Jochinke said.
ValueStrat’s price index before showed a 0.8% quarterly improvement in overall costs as of the first quarter of the year.
“All established freehold villa locations monitored by the [index] saw capital values improve since the last quarter, ranging from 1.8 percent to 5.4 percent. However, only half of the apartment locations improved in value, some areas saw declines of up to 2.8 percent,” Haider Tuaima, head of real estate research, told Zawya.