Growth in Prime Property Prices in Dubai reached 50% of last year’s end-quarter index

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The Prime Global Cities Index for the second quarter of 2014 revealed that the annual growth in prime property prices is just half of the previous quarter showing 6.3% compared to 11.7% last quarter of 2013.

Growth in Prime Property Prices in Dubai reached 50% of last year’s end-quarter index

Growth in Prime Property Prices in Dubai reached 50% of last year’s end-quarter index

According to the property consultancy that made the study, Dubai placed 13th as the best performing real estate market. It explained that the decision to set up a mortgage ceiling and double transfer fees at the end of 2013 have manipulated buyer action more than forecast.

Furthermore, 25-35% of property purchases in Dubai were revealed to come from mortgage financing. On the other hand, with new supply at the prime level seem to be inadequate over the next 18 months, the prices in Dubai is forecasted to fortify in the rest of 2014.

An increase by 6.2% on average worldwide has been recorded in the prime residential prices across the index’s 32 cities for the month of January to June 2014. Twenty seven out of the 32 prime residential markets showed positive yearly price growth in the first month to June 2014, a good leap from 21 last year.

Jakarta and Dublin stood out with 27.3% and 23.5% higher respectively. However, both showed deceleration in growth in the second quarter.  US cities also made it to the global list presenting Los Angeles,  New York, Los Angeles, San Francisco and Miami in the top 10.

Mohamed Dekkak