UAE Prices Could Reach Pre-Crisis Levels by 2014

Market for sales that will be increasing The price of homes in some areas of the UAE could see a return to levels not witnessed since the financial crisis and the subsequent property bubble, commentators have claimed. The nation experienced a very strong 2013, during which prices grew by between 20 and 35 per cent, and while most expect that this year will be a little quieter, it is still thought that prices will accelerate and in some areas exceed levels not seen at any time in the last six years. Jones Lang Lasalle said that it expects to see rises lower than they were a year ago - this could be a result of the fact the Dubai Land Department introduced its cooling measures last year with moves such as the doubling of transaction fees - but it thinks that final sale values will still exceed the 2008 peaks. At the moment, the company said that property prices remain some 15 per cent below the peak levels, but it expects appreciation throughout the next few months to mean that this height will be reached once again either by the last quarter of 2014 or the first three months of 2015. "Prices in 2013 in Dubai did increase at an unsustainable rate but when we look at 2014 we're expecting there to be continued price growth but not at the same level that we saw last year," said Craig Plumb, head of research for the Middle East and Africa at Jones Lang Lasalle, said. He added that alongside the government's cooling measures around the market, there is now a more widespread maturity. Developers are now more cautious, for example, and are staggering their releases to try to stave off the threat of flipping, which means that Mr Plumb expects the potential for a bubble to be avoided throughout 2014. And it is not just the market for sales that will be increasing throughout the next year, either, with Jones Lang Lasalle's report stating that buy to let owners should see a strong 12 months. The company's report stated that rental growth should be between ten and 20 per cent across the next year, which will bring it largely in line with the 17 per cent average witnessed last year. via:http://www.propertyshowrooms.com/united%20arab%20emirates/property/news/uae-prices-could-reach-pre-crisis-levels-2014_313089.html