There has been rise in the demand for property in sought after locations in Dubai and continuous demands have pushed up the prices. The average cost of apartments for sale has increased about 12% in the first quarter of the current year 2013. In the consecutive months of this year, the prices of apartments have risen to about 27% year on year. Not only the apartments for sale but villa prices have also increased up to 21%. The rise is there in the rental properties as well. Apartments for rents have witnessed an increase of 3% in the price while rental villas have witnesses increase in of 4% in the rent.
The overall scenario is quite encouraging and market analysts are positive about this continuous growth of the Dubai Real Estate market. The increase in price for apartments for rents is not only due to relocation of tenants but Dubai is having new tenants and immigrants who are taking on properties for rent for longer periods. During the economic downturn, Dubai had witnessed a decline of 60% in the real estate property but the scenario is better now with gradual recovery happening in the entire industry. The speculative buyers of the residential segments are again taking interest in buying properties and the market is sure to be better by the end of this year.
