Dubai property prices rise for 16th straight month

Property prices in Dubai increased for a 16th consecutive month in March, a new report has shown.Deutsche Bank confirmed that the average asking price went up by 1.5 per cent on the previous month, which highlights the scale of the recovery within the sector over the past year or so.Property prices have risen by 6.2 per cent so far in 2013 and experts are fully expecting this figure to increase as the year progresses.Although prices are still way down on the peaks seen before the economic downturn in 2008, it is encouraging to see things moving in the right direction.Unsurprisingly, properties in certain parts of the city performed better than others, although there are signs that less fashionable regions are also starting to gain favour among investors. Overall, the average asking price for a villa was up by 1.6 per cent in March month-on-month, while apartments were selling for an extra 1.5 per cent.”The price recovery that started in late 2011 in prime properties is now spreading to second tier communities,” research analyst Athmane Benzerroug commented in the Deutsche Bank report.”Despite new supply, investor confidence remains strong, while main master developers are accelerating project launches.”Indeed, construction firms that were forced to shelve projects when the economy collapsed five years ago are now resurrecting their plans and this is giving investors lots more choice.This is not the only study that has highlighted an upturn in the UAE's real estate markets.Friends Provident International (FPI) recently revealed that investors are feeling increasingly comfortable in Dubai and many people have turned their attention away from safe assets such as gold in favour of pouring their money into property.Matthew Waterfield, FPI's general manager for the Middle East and Africa, said it is no surprise to see Dubai-based buildings selling so well, as this is a trend that had been steadily emerging in previous reports conducted by the company.The First Group can help you find apartments for sale in Dubai Taylor Scott International