Prices of villas in Dubai climbed 37 percent annually in the third quarter of 2021 and are up by nine percent from the second quarter, according to real estate company Asteco.
Apartment sales prices are up 14 percent annually and six percent quarter on quarter, Asteco said in a report.
In its UAE Real Estate Report Q3 2021, the company said residential supply had slowed to just 100 villas delivered in the quarter, while 3,600 apartments were completed.
However, the company expects a total of 9,300 apartments and villas to be completed by the end of the year, based on construction progress, with most attributed to the Azizi Riviera development, located in Dubai’s Meydan area.
“The real estate market in Dubai is riding on a wave of positive market sentiment driven by Expo 2020, government initiatives such as new visa programmes and regulations to attract foreign investment, the easing of COVID-19 restrictions and the successful rollout of the vaccines, all of which have provided a significant boost for the broader economy,” the report said.
It also showed that villa prices in Dubai are 24 percent below peak, which was in the second quarter of 2014, according to Asteco data.
In Abu Dhabi, villa sales prices are up 14 percent annually and eight percent quarter-on-quarter, while apartment prices were stable, up one percent both annually and quarter-on-quarter. The prices are six percent below the market peak, which was in the fourth quarter of 2015, according to Asteco.
Apartment rents reduced by two percent annually in the capital, but villa rentals prices were ‘flourishing’ in some areas, with average prices up three percent annually and quarterly, and in the highest increase area, Golf Gardens, by eight percent quarter-on-quarter and 15 percent annually.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
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