Dubai second highest price increases
In the first quarter of this year the emirate of Dubai ranked only second to China in the global listings of domestic property markets with the highest price increases.
The Knight Frank global index looked at 55 countries around the world and found that residential prices in Dubai rose more than 9% to place it near the top of the list.
Year on year figures show that values in the emirate have risen 21.1% compared to the annual growth in the first quarter of 2012 and that prices have increased on average by 18.9% even since the third quarter of 2012.
Additional data from Deutsche Bank reveals that both property prices and rents in Dubai have increased for 16 consecutive months, establishing firm evidence of a positive trend.
Although government investment in infrastructure projects and new announcements of major private developments continue, some analysts fear that there may be a ‘boom and bust’ scenario in the making.
However, the Real Estate Regulatory Authority (RERA) is continuing to carry on a ‘hands off’ light touch approach, although chief executive Marwan Bin Ghulaita said potential investors should do their own research before making any moves.
“My advice to all new investors is to do your homework. All rules and regulations are in place now. The only thing is they need to do their due diligence more and more,” he said.
“If we say 10% to 20% is speculation, that it is okay for the market because there will always be buyers who will take the challenge and the risk to invest in any such project.”
Bin Ghulaita also made a point of explaining that it is not compulsory for all developers to provide their liquidity before launching new projects, although the Dubai Land Department introduced a Code of Corporate Governance last year aimed at highlighting the responsibilities of developers.
If you are transferring money abroad to Dubai, compare the various exchange rates offered by the banks to those available from currency exchange specialists in order to get the best deal.