Dubai property prices soared in the first half of 2013, with some residents forced out of popular areas due to steep rent increases, according to a report by real-estate consultancy Asteco.
Average rental rates for apartments and villas in Dubai rose by 20 and 17 percent respectively during the first six months of 2013, compared with the first half of last year.
The average sales prices for apartments and villas rose by 38 and 24 percent respectively over the same time period.
Apartment prices in the Discovery Gardens area rose by 75 percent in the second quarter of 2013 compared with the same period last year, the steepest rise recorded by Asteco.
“Some residents will be priced out of established communities to more affordable, less developed areas due to the rent rises,” commented John Stevens, the managing director of Asteco Property Management.
“Relocations to the more budget friendly neighboring emirates are likely to increase,” he added.
The outlook for the rest of 2013 is similar, with property prices expected to grow, as improving market conditions fuel residential demand, added the report.
The first half of 2013 “has seen no slowdown in transaction volumes, rental or sales growth, while new project launches have become a weekly occurrence,” added Stevens.
Meanwhile, the rental market for luxurious properties in Dubai saw prices rising by 18.3 percent in the first quarter of 2013, according to figures in the Prime Global Rental Index report, published by Knight Frank earlier this week. The rise was the highest of all cities attributed in the index, which globally grew by 0.2 percent.