Property price boom
Apartment prices are on a soaring rise - up 38% from the previous year. While some experts have been cautious of what this means for the future of the market, a new report has revealed good news for investors.
According to a report by Standard Chartered Bank, there are key differences to this property boom when compared to what happened in 2008. The report pointed out that this time, the driving factor is a growth in the logistics, hospitality and retail sectors and an increase in the population of the city. In 2008, it was more about speculators looking to flip property for a quick profit.
The report did note that there is a risk for the market to turn back towards a speculation-driven market if authorities are not careful with their regulations.
When it comes to growth, this is the year of apartments. While previously, it has always been villas that outperform, in the second quarter of 2013, apartments were selling for 12% more and leasing for 7% more than in Q1 2013; meanwhile, villas were selling for 8% more and leasing for 6% more.
Keeping with the growth in the market, developers are all set to launch new projects in the coming months. The most popular areas for future developments include Downtown Dubai, Business Bay, Jumeirah Village and Dubai Maritime City.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. Most leading experts seem to hold an optimistic viewpoint for the future of the emirate's property market. We hope that our round-up of stories and expert opinions has helped some of you decide on whether it is a right time to invest in the housing market. Be sure to catch our next issue to know more about new industry trends.