Dubai residential values on the up
Luxury villas are increasing in value as the residential property market in Dubai continues to record positive signs
The average value of a high-end villa in Dubai in March 2012 was Dh1,150 (£198) per square foot – up from Dh 1,120 in December 2011 – according to Cluttons.
The news comes as a welcome sign for UK architects that the worst of the dip in the UAE may be over. A raft of projects was unlocked in neighbouring Abu Dhabi earlier this year.
All grades of villas grew in value during the first quarter of this year, as did high-end apartments, with mid-range apartment values remaining static.
Only apartments at the bottom end of the scale decreased in value over the last three months, from Dh 420 to Dh 415 per sq ft.
Cluttons said mortgage lenders were cutting their rates in a battle for market share.
‘As well as offering mortgage rates for as low as 3.5 per cent, banks are slashing arrangements fees and timescales to process approvals in an attempt to attract the limited market available,’ the firm said in its report.
Property developer Al Mazaya last week said it had signed construction contracts to resume work on some stalled projects in Dubai.
Chief executive Eng Naif Al Awadi said: ‘We have been able to solve about 70 to 80 per cent of our problems in Dubai during the last 18 months.
‘We began to notice some signs of demand on real estate units in Dubai by international companies, a demand that was absent from the market during the last three years.’