Concerning the jarring ride Dubai real estate market had during the past few years, 2013 is proving to be an excellent year for the emirate. Not only the metropolis ended up winning the Expo 2020 bid, the government also managed to rekindle investors’ interest in the property market. The population grew substantially and the city flourished as the property sector completely resurfaced from the rubbles of the 2008 crisis.
In the wake of the blossoming prosperity, Bayut.com observed the encouraging trends in the property market during the third quarter of the current year. Startlingly, the performance of the property market of Dubai was encouraging since a steady spike in both rent and sale prices were observed in both primary and secondary property markets. Though the winning of Expo bid is bound to encourage the developers to come up with more awe inspiring developments but Dubai is an unpredictable land.
Bayut’s analysis of the Q3 offers details of the overall performance of the third quarter of the current year regarding apartments in different bed groups and sporting studios. The apartments in Dubai were seen to be increasing at an average rise of 10.43 per cent, making Q3 the second best quarter of the year so far. According to the stats retrieved from the online database it was observed that family apartments experienced a hike of 25.85 per cent, thus receiving the best treatment in the prevailing property boom.
While the 3-bedroom apartments were costing buyers almost 26 per cent more, it is deemed that the prices of 2 and 4 bedroom apartments would augment consequently but unfortunately the same could not be said for the studio apartments. The rising demand for the bigger apartments is giving a hard time to the studios as in Q3 the prices of studios dropped about 3.20 per cent. Comparatively during Q2 the same apartments were seen to be in the limelight and experienced an increase of 22.25 per cent. Nonetheless if you would look at the big picture, the sale price of these apartments has increased by 46 per cent in the first three quarters of 2013, as per Bayut’s statistics. The 2 and 3 bedroom apartments in Dubai also experienced a price hike of 4.70 per cent and 3.94 per cent in Q3 respectively.
The findings of Bayut.com for Dubai’s rental market are adequately encouraging as the rents for all apartment groups were seen on an upward trend during Q3. It was quite interesting to note that where the prices of studios fell 3.20 per cent, the rents increased 19.11 per cent. The rents for 4 bedroom apartments also registered a significant increase of 10.35 per cent. The 2 and 3 bedroom apartments registered a rental hike of 3.55% and 4.29% respectively. Overall the average rental increase in Dubai was 8.6 per cent during Q3.
The real estate market of Dubai is flourishing and investor’s interest is observed to be growing daily. The trends are shifting and posh localities like JLT, The Greens, International City and Discovery Gardens have become quite expensive tor the middle and lower class tenants, who are consequently shifting to places which were considered as ghost towns and thus inhabiting them. The emirate of Dubai is emitting energetic vibes and its bandwagon is channelled to a booming prosperity. All that remains to be seen is that on which basket the investors put all their eggs because Dubai is going to scale greater heights in future.