According to a new report, the Dubai property market is experiencing a boom similar to the likes of 2008, especially in the residential sector. Residential capital values rose by almost a third during the first half of the year with rents rising as much as 7 percent in Sharjah. In addition, the report from Cluttons pointed out that villa values rose by an average of 21 percent this year with apartments in Dubai rising by 25.1 percent during the second quarter.
Dubai has benefitted tremendously from the Arab Spring with its safe haven status amidst political instability. In addition, the local economy has received a boost from job creation and the subsequent influx of expatriate workers.
Steve Morgan, the head of Cluttons Middle East, said: “The resounding success of Dubai residential so far this year should not come as a surprise given the magnitude of the correction recorded during the bottom of the market; we are still far off the previous peak, when growth was far more unsustainable.”
“The acceleration in residential capital values this year has been underpinned by robust levels of job creation and a rising population, rather than being fuelled by ‘fly-buy’ dealers, as was the case in the past. We are yet to see a definite solution on the matter, although this is less concerning than in 2008, given the increased number of end-users in the market,” he added.