Dubai: For people with limited incomes, the real estate market in Dubai can be out of reach. After all, it is where a flat or a villa in a posh neighbourhood could cost more than a low-wage earner’s lifetime of savings
However, for those who are flush with cash, the property market may not be one of the costliest at the moment.
A new report indicates that judging by the pace of house price increases posted by prime properties around the world, housing costs in town aren’t something to despair about. In fact, among the 55 locations monitored by the Knight Frank Global House Price Index, Turkey is now one of the markets to reckon with.
Property prices in Turkey went up by 18 per cent in 2015, as more investors increasingly looked to the country’s realty as a “safe haven”. Prices also went up almost as fast in places like New Zealand (up 14.2 per cent), Sweden (12.3 per cent), Australia (10.7 per cent) and Luxembourg (9.2 per cent).
In contrast, sales prices in Dubai dropped by 11 per cent following a rapid rise between 2012 and 2014. According to Jones Lang La Salle in January, it looks like the market has stabilised after cooling down last year.
Dubai used to rank highly on the house price index, taking the 39th spot in the fourth quarter of 2014, ahead of Switzerland, Japan, France, Singapore and Spain. Dubai’s rate of property price decline for 2015 could be comparable to Ukraine and Greece, where rates fell by 12 per cent and 5 per cent, respectively.
There have been mixed reports about the state of Dubai’s property market. According to a recent report by consultancy firm ValuStrat prices are showing signs of possible bottoming-out. As of February 2016, prices for villas and flats did not post “significant change” in prices.
Reidin’s Residential Property Sales Price Index, however, posted a 4.3-point decline, which represents a 1.65 per cent decrease in February 2016. Apartment sales prices dropped 9.6 per cent year-on-year, while villa rates dropped 11.5 per cent.