On the eve of Cityscape Global, the major exhibition for the Dubai property market, a Q3 report has been released which supports the sentiment that prices are increasing across the Emirate.
Real Estate experts Cluttons state that apartment prices have increased by 4.9% across the first nine months of 2012 and the company predicts that the trend is set to continue into the new year.
The numbers were supported by news in the report that rental values had also increased, by as much as 6.8% across the board.
There has been a growing confidence in the Dubai property market throughout 2012 and this is expected to peak at Cityscape Global taking place from 2-4 October at the Dubai International Convention and Exhibition Centre.
Many of the leading Dubai developers are expected to announce progress on projects across the Middle East with a big focus on the serviced apartment sector. In line with this, DAMAC Properties, one of the leading luxury developers in the region, has announced it will have 4,000 units under development or management by the end of next year.
The first serviced hotel apartment project to be run under the luxury DAMAC Suites & Spa management arm will be Burjside Boulevard which overlooks the Burj Area and Dubai Mall. The project is expected to complete mid-2013.
Emaar Properties also recently announced its own serviced apartment offering in the same region – The BLVD which will start construction shortly and be ready my mid-2015.
As projects move again and the completion of many projects are set before the end of the year, Cluttons believes that as many as 24,000 units could hit the market in the next few months, tempering somewhat the strong increases that has been experienced in the first three quarters of this year.
According to Dubai government published figures, foreign investors buying real estate were responsible for acquisitions of AED 28.3 billion (USD $7.7 billion) in the first half of 2012, up 36% from the same period last year, giving a strong indication of improved business confidence in the Emirate from global investors.