Property prices are currently 16.2 percent higher than 10 months ago.
In August property prices in Dubai have been increasing for the tenth month in a row and are likely to continue growing over the next two years, the leading real estate platform Property Finder says.
Villa and apartment sale prices in Dubai have been going up since they hit their lowest points in November 2020, reaching USD 260 per square foot last month, which is a rise of 1.6 percent compared to the previous month and 18.5 percent compared to last year.
Property prices are currently 16.2 percent higher than 10 months ago, mirroring the growth that started in 2021 during the previous upturn in the market. In the period between October 2012 and July 2013, prices went up by 17.2 percent.
'The previous market recovery lasted over two years from October 2012… If the current recovery takes a similar trajectory, it would allow for an additional 20 percent increase from current price levels, going into 2022,' Property Monitor said in its report.
Since the ease of the COVID-19 restrictions last year the Dubai property market has been witnessing an influx of buyers who wish to take advantage of low prices. Sale prices started to inch up late last year but mostly for high-end or premium properties in sought-after locations.
Villas and townhouses have been popular among customers who are ready to spend a substantial amount of money on units with large outdoor spaces. However, once the supply of such units is absorbed, buyer interest is likely to shift to apartments, which then should start to see some price increase, Property Monitor says.
Though property prices have been growing since November 2020, current rates are still much lower than during the market peak in September 2014, when prices per square foot hit a high of USD 335.
Transaction volumes from the beginning of the year to date stand at 37,735, which is higher than the total number of deals recorded in 2020.
'With four months remaining, we are on track to equal, or even surpass, transaction volumes last seen in the boom years of 2013 and 2014,' Property Monitor points out.
Deals with high-end properties continued to lead the market. Dubai saw 141 deals involving properties valued at over USD 2.7 million in August, a up by 20.5 percent from 117 in July.
Off-plan segment recorded 2,580 deals, which is 41.8 percent up from the previous month. On a yearly basis, off-plan transactions volume jumped by over 230 percent.