Dubai property defies global trends

In 16 major investment zones, the price of villas skyrocketed 76 per cent over the year.

Property prices in Dubai have withstood the pressures of a tumultuous year in the industry worldwide, surging on the back of solid economic growth and a rise in construction costs, according to a survey conducted by The National. The survey found that the prices of villas increased faster than those of offices and apartments, posting a 76 per cent jump in the year to last month, while office prices rose 74 per cent and apartments 63 per cent. Office prices have increased faster than apartments over the past year, with record highs in Downtown Burj Dubai and Tecom. Analysts said the increase in prices could be attributed to the country's solid economic growth, an influx of expatriates seeking new job opportunities, rising construction costs sparked by steady inflation in raw materials and a labour shortage. Analysts said they anticipated further price increases in the sector. "You'd expect to see prices grow in Dubai and in the UAE in general, but at what rate we are not quite sure yet," said Vincent Easton, the head of sales at Sherwoods, a property agency. The survey looked at developments in 16 major investment zones in Dubai which spanned a range of price levels. The intention of the survey was to follow up prices of residential and commercial properties on a monthly basis. The survey was compiled in association with the National Bank of Abu Dhabi, Al Mal Capital, Colliers International, Better Homes, Hamptons International and Sherwoods, all of which provided property sales data. The National also intends to track the sale prices of some residential and commercial properties in Abu Dhabi on a monthly basis, although the capital's secondary market is still in its infancy. [e-mail]