Real Estate growth in Dubai shows ‘Confidence is Back’

Middle East’s largest private, luxury developer, DAMAC Properties, has seen encouraging growth during H1 2012, outperforming a recent report which suggests Dubai’s prime property has experienced a 5.6 per cent increase over the past six months.

The latest report from independent global property consultancy Knight Frank, which tracks the top five per cent of mainstream housing markets, shows that Dubai’s market is continuing to see an upturn in real estate valuations in the luxury sector.

The report comes as the Dubai Land Department announced the highest number of unit sales and unit value recorded during any July on record, reaching more than AED 2 billion.

DAMAC Properties Senior Vice President, Niall McLoughlin says specific sectors are showing encouraging results: “Serviced apartments are seeing the biggest growth for DAMAC Properties in recent months with clients demanding the highest quality design and finishing.”

“Confidence is coming back to the Dubai market and investors are looking to captilise on some great offers. We are set to see an increase in valuations throughout the rest of the year and into 2013,” he added.

According to the report Dubai remains in the top performing 15 cities worldwide and number one in the Middle East throughout Q2 with buoyant Asian markets and resurgence in the main European capitals providing a stimulus for growth.

The growth across all surveyed cities in the report is the highest quarterly growth in 18 months and McLoughlin says this reflects the confidence in the market.

“We are seeing a longer term view to the Dubai real estate market with investors from all over the world, especially the Kingdom of Saudi Arabia, Russia and India looking to Dubai for sound investments.”

The latest report conducted by Asteco during H1 2012 also supported the signs of revival in the Dubai property market. The report stated average apartment sales prices increasing between eight to nine per cent from Q1 – Q2 2012 in key locations including Dubai Marina and Downtown Dubai.