Real estate management company Asteco says the gradual recovery of the Arab housing market will continue in Q2 2021, with prices skyrocketing in parts of Dubai.
The second quarter of 2021 saw a sharp increase in villa prices in Dubai to a record 27%. According to analysts, this directly indicates that the UAE real estate sector continues to actively recover.
Jumeirah saw the highest price increases at 27% from Q1 to Q2 2021, according to the latest report from property management company Asteco. It was followed by Springs, which saw an increase of 24%, and Dubai Hills Estate, where prices increased by 19%.
Apartment sales in Dubai are also rising in all directions, with Palm Jumeirah having the highest growth from Q1 to Q2 by 13%, followed by Business Bay by 12% and Jumeirah Lakes Towers (JLT) at 10%.
As the upward trend continued, rental prices for Arabian Ranches also increased by 19%, followed by Dubai Sports City by 14% and Dubai Hills Estate by 13%.
Demand for apartments
Apartment rental prices have also increased, with the largest increase seen in Jumeirah Village Jumeirah - 7%, and only in International City prices have fallen by 1%.
Most communities in Dubai saw rental rates rise in Q2 2021, resulting in an average increase of 3% and 8% for apartments and villas, respectively.
While average rental rates for apartments continued to decline moderately by 3% compared to the same period last year, rental rates for villas increased by 10%.