Dubai property prices climb 30%, says Hamptons
Biggest rises in prime areas such as Downtown Dubai and Palm Jumeirah
Prime locations in Dubai's property markets witnessed price increases of up to 30% in 2012, according to estate agency Hamptons MENA.
The company said that average property prices in the Emirate climbed by between 20-30%, with the biggest increases witnessed in prime locations such as Downtown Dubai and Palm Jumeirah.
The biggest price rises for villas was experienced in the Arabian Ranches development.
The number of transactions completed by the firm grew by 16% with interest coming both from investors and buy-to-let customers. It said the average size of property bought dropped from 1,722 sq ft to 1,320 sq ft, indicating more demand from smaller-sized families. The bulk of demands both for sales and lettings came for properties in downtown Dubai and Dubai Marina.
Hamptons MENA's head of operations, Niraj Mesand, said: “The strong performance of the residential property market in 2012 is a reflection on Dubai’s sound economic fundamentals.
"Led by the robust performance of its traditional growth sectors including retail, tourism, aviation, hospitality and trade, Dubai has established its position as the region’s business and tourism hub.
He said that new projects announced such as the Mohammed Bin Rashid City scheme show the sector "is poisted for stronger growth" in 2013.
The firm said that the Tanmia initiative had been successful in helping to kickstart stalled schemes and that the recommencement of projects in areas such as Dubailand, JLT and Business Bay was an indication of the strengthening market.