Dubai property owners see sale prices rise by 15%

12/09/2012 - Dubai Property News Posted by Bob Brunskill
Dubai property owners see sale prices rise by 15%

Further evidence that Dubai is an increasingly attractive proposition for property investors has come to light. According to UAE Islamic home finance provider Tamweel, the buildings within its portfolio have been selling at a premium in the past year or so. The company revealed that between January 2011 and the same month in 2012, UAE properties were being purchased for up to 15 per cent more than they were in the previous 12 months. Bosses at the firm stated that the most lucrative areas were Dubai and Abu Dhabi, which will come as no great surprise to seasoned investors. Dubai has been a haven for foreigners who are looking to make profits on properties for a long time and it seems the market is continuing to improve following a dip during the global economic crisis in 2008-09. The emirate has some of the world's most exclusive real estate and building developer Nakheel recently confirmed that accommodation in the swanky Palm Jumeirah is still in particularly high demand. This is backed up by Tamweel's latest figures, as they showed that apartments in the Palm Jumeirah - as well as Downtown Dubai, Dubai Silicon Oasis, Arabian Ranches, Emirates Hills, The Meadows, The Lakes, JBR and Victory Heights - have seen price increases in the region of 15 per cent. "We have witnessed an upward trend in UAE property prices over the last 18 months, especially in high-quality properties in mature and completed developments," commented Tamweel's acting chief executive Varun Sood. He said the demand for home finance has risen sharply recently - going up by 26 per cent in the first half of 2012 when compared with the same period in 2011. This, Mr Sood added, has helped to support the property market, which has led to higher values more or less across the board. "The increase in home finance transactions and the availability of home finance from different providers have contributed to today's healthy market," he continued. "It is important to remember that home finance in the UAE is still only a decade old, meaning enormous untapped potential still exists for the industry."