Prices in prime areas in Dubai go up 8%


By Suzanne Fenton, Staff Reporter

Dubai: Apartment prices for completed projects in prime locations, such as Downtown Burj Dubai, have increased eight per cent in the last quarter, the biggest jump of any location.

Property services company Asteco said in its quarter three report that apartment prices for Downtown Burj Dubai have risen from Dh1,200 per square foot in the second quarter to Dh1,300 per square foot in the third quarter.

Prices of completed apartments and villas across the rest of Dubai have increased just one and three per cent respectively, quarter on quarter.

“Both Downtown Burj Dubai and Jumeirah Beach Residence are highly desirable, fully established communities, which are exactly what the market is seeking. A completed tower is no longer enough if it is not part of an integrated community with convenient access to schools, hospitals, transport, leisure and entertainment facilities,” said Elaine Jones, chief executive of Asteco.

However, within the rental market, landlords are inflating rents due to “increased interest and rumours of recovery” the report said.

With the opening of Dubai Metro last month, prices of units close to metro stations are likely to increase. Niall McLoughlin, senior vice president of corporate communications, Damac Properties, which has development in a number of locations, said location would always be an important differentiating factor for end users and investors.

“We believe that ultimately, those developers who can offer developments in great locations such as the Marina, Business Bay or DIFC will have a definite advantage over their competitors,” McLoughlin told Gulf News.