House Prices in United Arab Emirates

“Residential real estate prices in Dubai have been rising substantially, while other market segments, especially office space, are recovering at a slower pace. The recovery in the Abu Dhabi real estate market has been lagging,” according to the latest IMF economic report on UAE. On Dubai and Abu Dhabi, it says:

  • “The recovery in Dubai is largely concentrated in high-quality residential properties, helped by robust non-oil GDP growth, increasing numbers of expatriates, and Dubai’s relative stability as an investment destination. Residential real estate prices rose on average 16 percent year-on–year in April 2013. Supply growth was modest in 2012 but is expected to increase in 2013. Hotel occupancies and room prices have increased significantly because of a substantial rise in tourism. Despite a large increase in the supply of office space, a recovery in rentals started in late 2012.”
  • “The recovery of the real estate market in Abu Dhabi has been lagging. Price increases in the residential market have been modest (4 percent year-on-year in April 2013). New supply of office space has remained substantial, with constant high-quality rental rates since mid-2012, while lowerquality office leases are still facing downward pressure. Retail supply could grow significantly in 2013, which could place downward pressure on rentals, which have been flat in nominal terms since 2009. Demand for hotel rooms has not kept up with supply in 2012, and significant further capacity is expected to come on stream this year.”

Posted by at 3:38 PM

Labels: Housing

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