So far, it can only be said of the prime office properties, however, housing prices in the residential property sales segment also increased recently.
Data on the average office rentals growth in prestigious central Dubai areas was published in the report from a reputable research agency JLL. According to the data for the first quarter of 2016, office rentals in Dubai increased by an average of 11.3 per cent, which enabled the emirate to become the first among the neighboring countries with this indicator. The second highest rise in office rentals was recorded in Cairo with 16.7% of annual growth.
Some Dubai areas even managed to beat the emirate’s average record in relation to office rental prices: Dubai International Financial Centre (DIFC) free zone saw an increase in office rentals by as much as 20% per annum.
But the main investors’ and office tenants’ focus is still attracted the most to the Central Business District of Dubai (CBD): one square meter of office premises here is now leased at an average price of AED 1,922 (USD 523).
"In Dubai, rental growth is predicted to move into further positive territory during the second half of the year, and low vacancy rates coupled with little interest in occupying alternative space will continue to prevent substantial fall in rents," said Jeremy Kelly, director in Global Research Programs, JLL.
As for the residential property market, here, too, everything goes rather well as expected, experts say. Sales prices for apartments and villas in Dubai keep growing, albeit at a slightly more modest pace than office rentals. The volume of residential transactions in the second quarter of the year increased "considerably" — by 5% compared to the first quarter. Also, during the quarter, prices managed to grow in areas of low-rise developments like The Springs and The Meadows: here sales prices increased by an average of 3% quarter-on-quarter, while the annual figures are still 7% lower than last year’s.
Other areas seem to "frozen" prices, waiting for further changes in the market. Thus, Emirates Hills and the manmade island of Palm Jumeirah, as well as other popular areas with villas and townhouses, like Jumeirah Park, Arabian Ranches, Green Community and Dubailand, saw mere or no increase in property prices in Q2. But in the apartments segment Discovery Gardens stands out with the average sales price having increased by as much as 4% in a quarter.
In the end, the overall supply and demand balance will put all the things right in the market. According to various estimates, Dubai housing sector may soar up with only 35% of predicted and expected number of new housing units this year, thus making all the preconditions for the further price growth quite realistic.