A new report reveals that the UAE real estate market has made widespread gains and is trending to positive territory this year.
Bayut.com, one of the leading UAE real estate portals, points out that the real estate recovery is no longer limited to the posh areas of Dubai. During the first quarter of 2013, the Dubai real estate sector grew on the back of strong rental demand. As a result, rental prices of both villas and apartments were higher compared to the last quarter of last year. Figures from the Asteco report show rental prices for apartments and villas increased by 21% and 19%, in Q1, 2013, respectively.
During the same period, new tenants showed a preference for villas in Dubai. This demand boosted villa rental prices, which touched their February 2013 peak value. However, the report points out that rental prices are still 26% lower than the peak recorded in January 2009 prior to the global financial meltdown.
The property prices in UAE have also been well supported by a steady growth in population and increasing number of job opportunities for expatriates. Therefore, the influx of population has pushed the rental and sale prices in Dubai. According to Bayut.com, the sale price of a studio apartment in Dubai has increased by almost 27% during the first quarter of 2013, while at the same time, the weak supply of new villas in Dubai has increased their prices by about 5% compared to the previous quarter.
Abu Dhabi’s realty market has become more polarized as prices of older units in most parts of the city have continued to fall. The report highlights annual rent falls of larger apartments in Abu Dhabi by an estimated 22%, while villa rentals were also down by about 19% due to the oversupply of older units in the market.