(MENAFN- Khaleej Times) The demand for villas, apartments and plots of land for development purposes in the UAE is on the rise pushing prices up, says a study by Abu Dhabi-based property advisory firm Tasweek Real Estate.
In its latest market report, Tasweek Real Estate Development and Marketing has painted a positive picture of the realty sector showing rising property sales, steady supply and growing investor confidence.
Tasweek's chief executive officer Masood Al Awar told Khaleej Times that in the first six months of the year, 14,260 transactions were registered in Dubai and the value of property sales rose 63 per cent, with an average of 32 transactions every hour.
The areas, where most of the demand for plots of land, villas and apartments is coming from, are located around Sheikh Zayed Road, Al Khail Road, DIFC, the Down Town area, The Villa project, Dubai Media City, Internet City, Dubai Marina, Emirates Hills, the Palm, JBR and Meydan. The renewed confidence is the result of double-digit returns on investments and the improving ability among developers and owners to meet their financial commitments.
After being declared by Forbes as the second hottest property market in the world in 2012, Dubai once again proved its rebounding appeal among global real estate investors by posting its 16th consecutive monthly increase in property prices and rents in 2013. This indicates the local property market's steady and sustained recovery, Al Awar said.
In addition, demand grew from end to end, with luxury properties in even the most exclusive parts of the emirate posting strong sales. Dubai's buyers and sellers engaged in a total of 14,260 transactions for the first half, collectively valued at Dh44 billion. Matthew Green, head of research at CBRE, a leading property advisory firm in Dubai, said that capital is coming into the realty sector from Pakistan, India, Russia and other countries, pushing prices higher by five per cent to 10 per cent in the first six months of the year. In the remaining part of the year, property analysts hoped that a similar price trend would be seen.
Al Awar said that in the absence of an active role of the financial sector following strict mortgage rules imposed by the Central Bank of the UAE, the realty growth was being push by private equity and medium term speculators, who want quick capital gains.
Dubai is currently a profitable market due to its higher population growth rate and stronger investor pull. March 2013 property prices in the emirate climbed 18.3 per cent over the previous year, with Dubai ranking among the top five best performing real estate markets in the world. Al Awar added that the Dubai Government had expressed full support in increasing global confidence for the local property market.
He further noted the recent review of best experiences and international practices related to real estate mortgage loan regulations conducted by the Regulatory Development Unit of the UAE Central Bank as a critical market factor.
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