Figures show that property prices have increased by up to 75% in some sought after locations in that last year and rental prices are up around 20%.
The latest data from global real estate firm Knight Frank found rental values in Dubai rose more in the past year than anywhere else in the world, up 18.3% in the year to March.
Average apartment sales prices in Dubai increased by 12% in the second quarter of 2013 and are up 38% year on year, according to the latest figures from property consultancy firm Asteco.
However, prices in Discovery Gardens have soared 75% in the last year to reach AED7,550 ($2,055) per square metre, making it the fastest growing area in the city.
The Greens also saw prices increase by 44% to AED12,400 per square metre and Downtown Dubai is the most expensive location with prices up by 38% to AED17,750 per square metre.
The second half of 2013 has not witnessed any slowdown in transaction volumes, leasing or sales growth, while new project launches have become a weekly occurrence,’ said John Stevens, managing director of Asteco Property Management.
Rental rates have also increased with average apartment and villa up rates up 20% and 17% respectively over the past 12 months.
International City saw the biggest increase, where a lease for a two bedroom unit increased 27% year on year to an average of AED42,500. The popular expat district of Dubai Marina saw prices up 20% to an average of AED110,000 for a two bedroom apartment.
‘Some residents will be priced out of established communities into less developed, more affordable areas,’ said Stevens.
