Top-end property prices 'will continue to rise'

28/12/2012 - Dubai Property News Bob Brunskill
Top-end property prices 'will continue to rise'

A senior figure at the United Arab Bank (UAB) believes the value of top-end properties in exclusive parts of Dubai will continue to rise in the near future.

Chief executive officer at the organisation Paul Trowbridge thinks the positive momentum from 2012 will carry on for up to two years.

He told the Khaleej Times that further growth in the real estate markets beyond this point will depend on how much the sector increases in the next 24 months.

More and more people have snapped up property investments in Dubai in the past year and developments that were previously shelved because of the global economic downturn are now being resurrected.

As Mr Trowbridge suggested, much of the buying activity has been at the higher end of the scale, with apartments and luxury villas in areas such as The Palm and Downtown Dubai proving particularly popular.

Dubai is famous for being a playground for the rich and famous and investors know they stand to make sizeable profits by securing new assets in the trendiest parts of town.

There have also been a few signs that the demand for more affordable properties is starting to return, although Mr Trowbridge feels this will take more time.

"Assuming the premium properties continue to recover, it is inevitable that at some point in time the medium-end will benefit. The lower-end is only likely to recover once we have seen an established increase in the medium end," he was quoted as saying.

"We are likely to see price appreciation at the top-end continue for at least the next 18 to 24 months."

Numerous studies have shown that Dubai is by far and away the best option for property investors in the Middle East.

According to Jones Lang LaSalle, the emirate has been outperforming Abu Dhabi in 2012 and this trend is likely to continue into the new year.

Again, the company stated that buildings along Sheikh Zayed Road and in Downtown Dubai have been selling at a premium this year and prices are set to rise even further in the future.

The First Group can help you find apartments for sale in Dubai.