Interesting facts:All legal relations between local and federal authorities are stipulated in the constitution of the UAE Full version
The analysis of the real estate market of the Emirates has shown that the cost of residential accommodation and office space is characterized by an upward trend. The rise in prices is mainly due to inflow of investment and increasing solvency of local population.
The steady increase of macroeconomic indicators in the UAE creates conditions for further increase in prices for apartments, houses and offices, whereby the rise in prices will continue at least until the Expo is held.
During 2012 prices for apartment have risen by 14%, and villas by as much as 23%. The most increase showed in the houses in the Springs community – by 38%, in Dubai Marina district – by 28%, as well as Palm Jumeirah – by 27%. Moreover, the rise in prices was observed not only with regard to property offered for sale but also for housing rent. Average rent for a villa grew by 10%, and apartment – by 15%.
2013 became the prominent year for the UAE real property market - it was acclaimed as the year of dynamic growth (average price level increased by 21,7%). As for luxury real estate, its value in 2013 increased by 18.3% compared to 2012. This has led the Emirates to the fourth position in the rating of the most active luxury real estate markets.
The increase in housing prices for the last 3 years is due to the fact that a large number of long-term investors and end buyers of properties have entered the market, and hence the number of resold properties is decreasing. In light of the lack of new offers, investors should pay attention to the secondary property market, which entails the growth in prices.
While Europe is currently undergoing various tribulations, the UAE may boast about its stable economic situation. This fact, together with high standard of living and low tax regime attracts foreigners with high solvency. Foreign investors won’t miss an opportunity to invest money that willin turn, reflect on property prices.
According to analysts’ forecast by the end of 2014 the cost of housing will increase by at least 10-15%, whereby the price dynamics will affect almost all segments of the real estate market: starting from economy-class objects to elite villas. Experts have estimated that by the end of the year, the prices for luxury real estate, valued more than one million dollars, will rise by 10%, and even higher. However, in 2015 the luxury housing may go down a bit and and resume its growth thereupon.
More articles from "Dubai & UAE business news":