Report: Dubai house prices at pre-crisis level by 2015

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Business BayDubai house prices are only 15 per cent short of their 2008 peak and will return to those pre-crisis highs within 18 months, property consultant Jones Lang LaSalle (JLL) said on February 10, Reuters reported.

The emirate outpaced all major property markets in 2013, with prices climbing more than 22 per cent as billions of dollars of government real estate projects triggered a buying binge among investors. The fast growth, however, has raised concern about a potential repeat of the property market bubble that sent prices plunging by more than 50 per cent after the 2008 financial crisis.

“We are expecting prices to get very close to pre-crisis levels by the end of this year. It has already reached that level in some locations,” Craig Plumb, JLL’s head of research for Middle East and North Africa, said at a conference to release a report on trends in United Arab Emirates real estate.

“We are likely to be back to those levels in the next 18 months,” Plumb added.

Investors, however, are more cautious and new government regulations to control speculative buying has reduced the risk of another bubble, the JLL report said. JLL added that prices will continue to rise in 2014 but not as fast as last year. Rents for newly leased homes in Dubai will grow in the range of 10 to 20 per cent, Plumb added.

JLL said that 27,000 new homes are due to be built in 2014 as developers complete projects that were shelved over the past few years.

“Not all will get built on time. So we can say at least 20,000 units will enter the market,” Plumb said.



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Dubai house prices are only 15 per cent short of their 2008 peak and will return to those pre-crisis highs within 18 months, property consultant Jones Lang LaSalle (JLL) said on February 10, Reuters reported. The emirate outpaced all major property markets in 2013, with prices climbing more than 22 per cent as billions of dollars of government real estate projects triggered a buying binge among investors. The fast growth, however, has raised concern about a potential repeat of the property market bubble that sent prices plunging by more than 50 per cent after the 2008 financial crisis. "We are...

Business BayDubai house prices are only 15 per cent short of their 2008 peak and will return to those pre-crisis highs within 18 months, property consultant Jones Lang LaSalle (JLL) said on February 10, Reuters reported.

The emirate outpaced all major property markets in 2013, with prices climbing more than 22 per cent as billions of dollars of government real estate projects triggered a buying binge among investors. The fast growth, however, has raised concern about a potential repeat of the property market bubble that sent prices plunging by more than 50 per cent after the 2008 financial crisis.

“We are expecting prices to get very close to pre-crisis levels by the end of this year. It has already reached that level in some locations,” Craig Plumb, JLL’s head of research for Middle East and North Africa, said at a conference to release a report on trends in United Arab Emirates real estate.

“We are likely to be back to those levels in the next 18 months,” Plumb added.

Investors, however, are more cautious and new government regulations to control speculative buying has reduced the risk of another bubble, the JLL report said. JLL added that prices will continue to rise in 2014 but not as fast as last year. Rents for newly leased homes in Dubai will grow in the range of 10 to 20 per cent, Plumb added.

JLL said that 27,000 new homes are due to be built in 2014 as developers complete projects that were shelved over the past few years.

“Not all will get built on time. So we can say at least 20,000 units will enter the market,” Plumb said.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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