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In a stark contrast to the sizeable price increases in the previous quarter, property values in Dubai registered more modest growth rates to start the year, according to an Asteco report released exclusively to Property Weekly.
Sales prices were generally stable during the first quarter, rising by only 3 per cent and 6 per cent for apartments and villas respectively compared to the previous quarter.
The increase in sales prices came from less established areas, whereas communities with sales prices above the market average remained stable in the past quarter. The average residential sales prices had previously increased by 60 per cent year-on-year during the fourth quarter.
The report also noted that potential buyers were reluctant to purchase property at peak prices. Concurrently, there is growing interest in secondary areas with lower asking rates and offplan property with attractive payment plans.
Apartment rental rates increased by an average of 5 per cent, while villa rental prices were up 3 per cent. The areas that witnessed the highest growth rates were International City and Jumeirah Lakes Towers both at 11 per cent and Dubai Marina at 10 per cent respectively.
Office sales prices and rental rates, however, saw an improved performance, rising by 11 per cent and 8 per cent respectively.
''We believe that the overall positive market sentiment and increased stability in the economy has led to further interest in this sector, and therefore prices have risen slowly and steadily,'' the report stated.
Source: Jobannie Tabada, Subeditor, Property Weekly, gulfnews.com