Rents in Dubai gain from euro zone crisis, Arab Spring
Apartment and villa rents in Dubai climbed an average 17 per cent last year as the Persian Gulf business hub benefits from the euro-zone crisis and the so-called Arab spring, according to Asteco Property Management.
"Mid to high budget inquiries have increased and stock in popular developments is drying up," Asteco said. "In terms of supply and demand, Dubai is still benefiting from the euro crisis and the Arab spring as people seek stability and better economic conditions."
Dubai, which witnessed one of the world's worst property crashes with a 65 per cent drop in home values from its 2008 peak, is returning to large projects that dominated the market.
The emirate, home to the world's tallest tower and man-made islands, announced in November plans to develop a new district with the world's largest mall, 100 hotels and gardens larger than London's Hyde Park.
The highest rental growth for residential villas was in the Springs area, while those for apartments was in Discovery Gardens, Asteco said. Prices in the commercial property market saw "little movement" during last year, the company said.
"If demand continues, we expect to see a shift in the market from being predominantly tenant-led to one controlled by landlords, especially in quality, well-managed and established developments," said John Stevens, a managing director at Asteco.
Villa sale prices climbed an average 23 per cent year-on-year and apartment prices gained 14 per cent, according to Asteco. It said buyers bought for their own use and for rental income.