Dubai development continues apace

Dubai development continues apace

Quality residential developments in Dubai bounced back during the second quarter of 2012 after a stable first quarter, with average rent increases of six per cent for apartments and nine per cent for villas, new figures show.

Sales prices recorded double-digit increases in three developments, with rises of six to eight per cent elsewhere, according to the latest the first half 2012 report from UAE property management company, Asteco.

“After three years of declining rates and limited sales activity, the real estate market is on the way to recovery, with established quality communities showing increases in values and higher transaction volumes,” said Elaine Jones, chief executive at Asteco.

Rental rates for apartments were relatively stable through quarter one with minor declines in low quality/ poorly managed buildings in certain areas.

Towards the end of the first half of 2012 rates in established quality communities achieved average increases of six per cent.

Apartments in Dubai Marina and Downtown Dubai were the most sought after witnessing a 10% increase, with a two-bedroom apartment fetching between AED90,000 and AED120,000 per annum.