Dubai home prices up by a fifth as Emaar launches Dubai Mall apartments

The 297 luxury flats, which will be linked to the mall by a bridge, will go on sale on Saturday in Dubai, Abu Dhabi and Singapore, Emaar said.

Emaar is launching its Boulevard Point homes, with direct access to The Dubai Mall. Courtesy Emaar
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Emaar has already announced its second Dubai sales launch of the year as new figures indicate that house prices in the emirate rose by more than a fifth in 2013.

The Dubai developer said yesterday that it was about to start selling serviced apartments at its latest development, a 63-storey tower above the Dubai Mall extension.

The 297 luxury flats, which will be linked to the mall by a bridge, will go on sale on Saturday in Dubai, Abu Dhabi and Singapore, Emaar said.

The company, which came in for criticism last year when scuffles broke out among hopeful investors queuing to buy off-plan property at its sales launches said that potential purchasers would be asked to complete an online registration form first that would be available from Wednesday.

The flats will also be showcased in Riyadh in Saudi Arabia and Doha in Qatar.

“Meeting the demand for serviced residences as second homes in Dubai, Boulevard Point will redefine the luxury living experience,” said Ahmad Al Matrooshi, Emaar’s managing director.

Jones Lang LaSalle, the property company, said yesterday that house prices in Dubai rose by an average of 22 per cent in 2013 with more price rises expected this year.

The agent said Dubai rents also increased by an average of 17 per cent over the year as confidence returned to the emirate’s housing market.

Jones Lang LaSalle’s figures echo those of the property website Dubizzle, which last week reported property prices and rents increased by up to 50 per cent in some areas of Dubai last year.

And earlier this month the Land Department director general Sultan bin Mejren said house prices in the city climbed more than 30 per cent last year. He predicted prices could rise as much as 35 to 40 per cent this year.

News of rampant house prices and rent rises in Dubai are prompting the Land Department to consider implementing more rules to control speculation, Mr bin Mejren added.

Jones Lang LaSalle warned that such rapid increases in house prices were not sustainable. It predicted that although both house prices and rents would rise again this year, the increases would not be as dramatic as last year.

“The pace of growth seen in late 2013 may, however, prove to be unsustainable, given the significant oversupply and high completion levels expected in some sectors,” said Craig Plumb, the head of research at Jones Lang LaSalle’s Dubai office.

“The Dubai Government has taken several measures to moderate the rapid increase in prices seen in 2013 and create more stable market conditions. These measures should help reduce some of the speculative pressures and reduce the likelihood of a significant price correction in 2014.”

lbarnard@thenational.ae