When Dubai real estate market recovery gaining momentum during the Q4 of the previous year, it led the experts to think better times ahead in 2012. Since the rate of decline in rents and sale prices had been slowed down to a significant extent, the real estate market was expected to hit bottom in the first six months of the year. The recent report of the Asteco has reported that the prediction has actually turned out to be true since Dubai real estate market is remaining steady in Q1.
The residential market in Dubai is showing mixed results since the demand of premium properties is rising in Dubai across some areas while properties in other areas still seem to be in pressure. Despite the mixed results, the overall Dubai real estate market is continuing its trend of stability. On the other hand, the price of the Abu Dhabi real estate is marking considerable declines.
In comparison to the previous quarter, the rents of villas in Dubai have inched up to 1% during the Q1 of 2012, whereas the selling prices of villas have grown by 4%. The rise in the selling price of the villas is because of the increasing number of the owner-occupiers in Arabian ranches, Emirates Living and Palm Jumeirah.
The average rent of a one-bedroom apartment in Downtown Dubai has showed a 5% growth in the first three months as compared to the previous quarter. A four-bedroom villa in Arabian Ranches and a 3-bedroom villa in Meadows has marked a growth of 2% and 3% respectively. Moreover, apartment rents have also remained steady across man areas in Dubai showing that residential market is now getting back on the track slowly.
Opposite to the residential market, the commercial sector of the market has showed low performance with 2% marginal declines in the in the sale of the offices because of low number of transactions. Moreover, the rents of offices in Dubai have also declined by 1%. Though residential real estate is currently outperforming its commercial real estate of Dubai, yet the rate of decline has been slowed down as compared to the worst times. These results show that other cheerful news about Dubai real estate can be expected in the following year.