The real estate sector of Dubai experienced a boom and bust cycle back in 2008, when the property market was smashed by the economic and recessional dint. However, Dubai came forward with the resurgence in the realty sector within a period of four years.
Bayut.com, one of the leading Dubai property portals witnessed that the property market showed flourishing trends in the past one year and also in the first quarter of the current year. And at present, the experts at Bayut.com note that the sentiments of investors that were baffled by the depressions in property prices now seem to revivify.
Be it Downtown Dubai, Business Bay, Dubai Marina, JLT (Jumeirah Lake Towers) or other posh localities of Dubai, an overall spike in property prices is being observed in Dubai. A study shows that the property prices increased notably in the Q1 2013 and this increase was estimated to be 5.4%. Even in the past one year (March 2012-March 2013), Bayut.com noted a price hike of 18.3%.
Furthermore, a transactional hike of 65% was also witnessed by Bayut.com in 2012, which is one of the evidences of property market resurgence in Dubai. The resurgence in the market is not confined to the increase in property prices and transactional activity, as a spike in rental figures has also been observed. Whether we talk about properties, villas or apartments for rent in JLT, Downtown Dubai, Business Bay or other high-end communities, an overall uptrend in rental prices can be noticed in Dubai.
All these factors uphold Dubai to ride high amongst the notable property markets of the world that include Monaco, London and Hong Kong. Bayut.com where one hand observes resurgence in the property market of Dubai also shows its apprehensions over the frequent property boom on the other hand. Bayut suggests that this resurgence in the construction sector must be supported by the robust factors, so that the risks related to Boom and Bust cycle could be avoided.