Dubai's realty and property sector grew exponentially at 30% (in 2006) much higher than the average growth rate of 21%. The current prices of residential apartments in Dubai average Dh1461.68 per square feet (US$398 per square feet). Having analyzed the prevailing rates at various districts in Dubai, we conclude that the demand for both high-end and low-end housing is growing and that the trend of rising prices will extend beyond 2010. In 2006, the rates for residential units in Dubai averaged US$465.9 per square feet; in January 2008, they stood at US$505.1 per square feet.
Supply demand theory dictates global trade and there is a perception that Dubai's property market too follows this dictum. Currently supply cannot sustain demand. And, our research makes us conclude that despite surplus of properties (by timeline 2010) property prices will yet be north. The reason, being that by the end of the decade, the sector envisages stability through tools like Property Index, Dubai Real Estate Corporation (DREC), Condominium, Strata and Owners' Association Laws which will provide specific guidelines for developers, buyers and sellers. Property Index in particular, is expected to have a major impact on the property trading trends in Dubai.
Property Index would serve as a guide for tenants in the UAE who often have to pay different rates for the same types of properties. It is meant to alleviate all price and rental discrepancies. In addition, the Dubai real estate index will serve as a guide to trading in the property sector.
*Compiled by Gowealthy Research Team; Sources include Gowealthy Archives, Developers' Availabilities & Resale Classifieds. The survey covered randomly selected properties at Dubai Marina, Business Bay, International City, Discovery Gardens, Dubai International Financial Centre (DIFC), Jumeirah Lake Towers, Culture Village, City of Arabia and Dubai Sports City, Dubai Silicon Oasis and International Media Production Zone (IMPZ). Calculations based on the average square feet price of 1291.6 square feet at prominent city centres in Dubai.
