Dubai is celebrated the world over for its exemplary infrastructure, vanguard sky scrapers and real estate developments, transcending boundaries of imagination and architecture.
Property prices in Dubai are heading north as investors have returned with a renewed zeal and end users are more confident investing in a property in Dubai than in the last 4 years.
According to Asteco’s Q1, 2013 Dubai Focus report, Springs registered 29% growth in sales figures in comparison to Q1 – 2012, followed by Arabian Ranches at 25%, Dubai Marina 30% and Palm Jumierah‘s sales figures growing at 27%.
Developers like Emaar, Nakheel and Damac have successfully launched and sold out projects like Azure Residences, Reem Mira, and Paramount. While new projects are being launched, many developments are being handed-over to home owners, adding to the existing supply of properties in Dubai.
In spite of the additional supply, the rental market is picking up; developed communities like Springs and Arabian Ranches have seen a growth of 32% and 27% respectively in comparison to rents in 1st Quarter 2012.
Premium residential localities like Palm Jumierah and Jumierah have witnessed 22% and 18% growth.
Having seen a similar frenzy in mid 2007 till mid 2008, one starts wondering if investing in a property in Dubai is right or not.
Given the spiraling rentals, one might think that it would be prudent to invest in a property now, before the prices surge out of common man’s reach.
Lets hope and pray, that the investors and developers do not succumb to greed and repeat the mistakes committed in the past, learning from the experiences.