Dubai property prices 'not far off 2008 peaks'

19/11/2012 - Dubai Property News Posted by Bob Brunskill
Dubai property prices 'not far off 2008 peaks'

Property prices across Dubai haven increased so sharply this year that they are almost back to pre-recession levels, it has been suggested.Investors had taken a cautious approach following the global financial crisis, but leaders at estate agent Cluttons believe things are firmly back on track.Speaking to the National, head of residential sales at the company's Dubai office Mario Volpi said prices are now "probably at early 2008 levels".The city was thriving in the summer of 2008, before the bottom eventually fell out of the market in October/November."If prices carry on rising the way they are, they will return to peak-2008 levels. We are not far away but there's still a little way to go," Mr Volpi was quoted as saying.As you might expect, apartments and villas in Dubai's more exclusive districts are attracting the most interest from investors and there has been a notable increase in demand for luxury accommodation on the Palm.However, Mr Volpi added that other less established parts of the city are also starting to gain favour."We've also seen price rises in areas that perhaps were less requested in the past, like International City and Discovery Gardens," he added.Average rents have risen by ten per cent year-on-year, Mr Volpi confirmed, although property owners in certain areas of Dubai have been able to hike their rates by as much as 20 per cent.This obviously makes the emirate extremely attractive to buyers who are looking to make some quick returns and now could be the ideal time for people to add to their property portfolios.According to the Royal Institution of Chartered Surveyors (Rics), it is not just residential properties that are proving popular in this part of the Middle East.Indeed, the organisation highlighted a significant upturn in demand for commercial assets too.Around 48 per cent of Rics members in the UAE said there had been a rise in the number of leases taken out on offices and retail space in the third quarter of 2012 when compared with the corresponding period in 2011.