The price of prime residential buildings in Dubai has soared by more than a fifth this year, according to research
Estate agents Knight Frank found that the growth of the sector in Dubai in 2013 was the quickest seen in any of the 10 cities it analysed over any of the past three years.
The emirate is expected to lead the world on housing growth again next year, with a further rise of up to 15 per cent despite attempts to cool the market.
The report said: ‘In the last quarter of 2013 Dubai has seen a doubling in the transfer fee to 4 per cent; mortgage caps for both expatriates and nationals; and a part state-owned developer banning real estate agents from selling off-plan property before completion.
‘All of this has come into play in order to ease residential price growth in the emirate, which so far this year has been running at a rate of 18-22 per cent year-on-year.’
Knight Frank said that although the crackdown was likely to hit transaction volumes and slow the rise in prices, Dubai would not be held down for long. The city was recently awarded Expo 2020, a decision expected to provide a further boost to the rapidly-growing economy.
‘We suspect that price growth will quicken again in the early part of 2014,’ said the report.
Beijing, Shanghai and Sydney all saw double-digit growth in prime residential prices this year, while London saw a smaller increase.
The prime residential markets in Paris and New York were flat in 2013, according to the report, while prices fell slightly in Singapore, Geneva and Hong Kong.
Woods Bagot regional executive chairman for Europe and the Middle East Jonathan French told AJ earlier this month that the latest wave of design work in Dubai was attractive to British practices.
‘Contract terms are becoming more acceptable, with limits on liability, and other elements that will lead to more international consultants working in Dubai,’ he said.