Heightened market activity linked to infrastructure
Sentiment in Dubai’s real estate market has recovered considerably since Q1 with real estate, legal and finance professionals all reporting increased traction and investor interest on the back of changing global market dynamics.
But one analysis is claiming that proximity to metro stations has been the main driver behind near 5% increases in property values.
Cluttons Middle East has published data to support the claims, showing an average 4.9% rise in apartment prices and a return to spring 2007 prices across the villa market, in properties located near metro stations.
Summarising the findings, the firm’s Q3 report stated: “The metro transport link has now established itself as a substantial variable, which drives an individual’s decision when short-listing property. The majority of areas close to the metro stations have maintained their demand and in most cases have increased in both capital and rental values.”
The analyst predicts a continuation of the trend into 2013.
Additionally, the report relays figures from Dubai Government which show foreign investors were responsible for acquisitions US $7.7bn in the first half of 2012; up 36% on the same period last year.
Trade license applications rose 9% in July 2012 compared to the same monthly period in 2011, according to the Department of Economic Development.