Dubai’s residential real estate prices jumped more than 9% in the first quarter of 2013 and emirate’s Real Estate Regulatory Authority seems willing to let growth continue without placing any controls on it. Deutsche Bank reports that the increases in rents and property prices, which are second only to China, mark the 16th consecutive week of growth. Dubai has implemented several new policies aimed at increasing transparency in the real estate market, although experts are unwilling to speculate as to whether these new measures are helping to spur investment interest. For more on this continue reading the following article from Property Wire.
Property price growth in Dubai is the second highest in the world in recent months, only surpassed by price increases in China.
Residential prices in Dubai rose more than 9% in the first quarter of this year, making the emirate the second best performing country out of 55 covered by the Knight Frank global index.
On an annual price rises in Dubai are up 21.1% compared to the annual growth in the first quarter of 2012 and the data also shows that prices have increased on average by 18.9% since the third quarter of 2012.
The figures confirm that in Dubai the property market is recovering well and although there may be some worries about speculation returning and causing a boom, most experts think that is unlikely to happen as the market is now more mature.
The Real Estate Regulatory Authority (RERA) seems content to let the market run without any further regulation at presents but chief executive Marwan Bin Ghulaita said property investors should do research before buying.
He pointed out that it is not compulsory for all developers to provide their liquidity before launching new projects, including 100% payment on land and a 20% construction guarantee.
Dubai Land Department also last year introduced a Code of Corporate Governance highlighting the responsibilities of developers, as well as methods of recourse during disputes over delays and cancellations.
‘My advice to all new investors is to do your homework. All rules and regulations are in place now. The only thing is they need to do their due diligence more and more,’ said Bin Ghulaita.
He also said that a certain amount of speculation in Dubai’s property market is acceptable. ‘If we say 10% to 20% is speculation, that it is okay for the market because there will always be buyers who will take the challenge and the risk to invest in any such project,’ he explained.
Meanwhile, the latest report from Deutsche Bank shows that property prices and rents increased for the 16th consecutive month in March.
And according to date from real estate analysis firm Reidin.com, there were about 30,000 property deals worth a combined $19 billion in Dubai during the first quarter of the year.
This article was republished with permission from Property Wire.