The Dubai property market, which was badly hit by the global financial crisis in 2008, is now showing positive signs of growth in the first quarter of 2012.
JustProperty.com – the largest dedicated property sales portal for the UAE – has seen a positive uplift in Dubai real estate prices in the first quarter of 2012 with some villa communities experiencing up to 9% price rises.
The Springs Dubai, for example, an ever-popular Emaar Development consisting of predominantly 3 and 4 bed family homes with landscaped gardens and community parks and lakes, has seen a promising increase in property prices in the first few months of 2012. The demand for Dubai villas still remains high as the supply of high-end family homes is not yet matching the demand.
Investors should however be cautious of these latest figures, as a large number of new properties are coming onto the market in 2012, including the huge Jumeirah Park villa development by Nakheel. Other developments such as Al Furjan and Jumeirah Village also approaching completion, each of which will bring a very large number of Dubai villas onto the market.
Apartment prices in the iconic Dubai Palm Jumeirah have also seen an increase in Q1 2012 as additional supply of apartments on the island is limited. All apartment developments on the trunk are now complete with just a few residential projects on the crescent left for completion. The “Palm Jumeirah Central Park” running down the middle of the Trunk is well underway and promises to be a positive “value adder” to the Golden Mile and Shoreline apartments.
All in all, the outlook for the Dubai real estate market is looking much brighter now than it did at the end of 2011, however caution should be taken in certain areas where large additional supply will be coming onto the market throughout the year.