UAE cities among fastest growing property markets worldwide

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Abu-DhabiKey cities in the UAE property market, namely Dubai and Abu Dhabi, have been put on a list of best performers around the world in terms of growing real estate areas. The latest report released by property consultancy Knight Frank, the Prime International Residential Index (PIRI), has shown that Dubai and Abu Dhabi in particular have performed well on a global scale and are likely to continue to do so next year.

In some parts of the UAE, property prices grew substantially in 2013, with prices growing by as much as 20 to 35 per cent as the boom in demand helped investors see final sale values recover to levels not seen since before the financial crisis struck the real estate market down in 2008.

Dubai’s property market alone grew by as much as 17 per cent throughout 2013, according to the Knight Frank wealth report, while overall growth seen in 2012 amounted to 20 per cent. In Abu Dhabi, the level of growth of the sector in 2013 amounted to 15 per cent to give the two UAE cities a really strong position globally. Overall, they now occupy the seventh and eighth places in the Knight Frank ranking for fastest growing markets.

Liam Bailey, global head of research, explained that in places around the world where the property sectors were hit hardest by the financial crisis, including the UAE and Spain, recovery is now picking up pace. The report also stated that Dubai is now a “hub for global investment”.

“Inevitable debates have ensued as to whether Dubai and Dublin are on the cusp of another bubble. However, in both cases, average prices have yet to approach, let alone exceed, their pre-crisis highs,” said Kata Everett-Allen, head of the PIRI analysis at Knight Frank.

“Cash buyers are driving sales and regulation is tighter with some purchase and ownership costs higher than in 2008. This follows Ireland’s introduction of a new local property tax in 2013 and transfer costs in Dubai doubling to 4 per cent during 2013,” Everett-Allen added.

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Reading Time: 2 minutes

Key cities in the UAE property market, namely Dubai and Abu Dhabi, have been put on a list of best performers around the world in terms of growing real estate areas. The latest report released by property consultancy Knight Frank, the Prime International Residential Index (PIRI), has shown that Dubai and Abu Dhabi in particular have performed well on a global scale and are likely to continue to do so next year.

Reading Time: 2 minutes

Abu-DhabiKey cities in the UAE property market, namely Dubai and Abu Dhabi, have been put on a list of best performers around the world in terms of growing real estate areas. The latest report released by property consultancy Knight Frank, the Prime International Residential Index (PIRI), has shown that Dubai and Abu Dhabi in particular have performed well on a global scale and are likely to continue to do so next year.

In some parts of the UAE, property prices grew substantially in 2013, with prices growing by as much as 20 to 35 per cent as the boom in demand helped investors see final sale values recover to levels not seen since before the financial crisis struck the real estate market down in 2008.

Dubai’s property market alone grew by as much as 17 per cent throughout 2013, according to the Knight Frank wealth report, while overall growth seen in 2012 amounted to 20 per cent. In Abu Dhabi, the level of growth of the sector in 2013 amounted to 15 per cent to give the two UAE cities a really strong position globally. Overall, they now occupy the seventh and eighth places in the Knight Frank ranking for fastest growing markets.

Liam Bailey, global head of research, explained that in places around the world where the property sectors were hit hardest by the financial crisis, including the UAE and Spain, recovery is now picking up pace. The report also stated that Dubai is now a “hub for global investment”.

“Inevitable debates have ensued as to whether Dubai and Dublin are on the cusp of another bubble. However, in both cases, average prices have yet to approach, let alone exceed, their pre-crisis highs,” said Kata Everett-Allen, head of the PIRI analysis at Knight Frank.

“Cash buyers are driving sales and regulation is tighter with some purchase and ownership costs higher than in 2008. This follows Ireland’s introduction of a new local property tax in 2013 and transfer costs in Dubai doubling to 4 per cent during 2013,” Everett-Allen added.

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