Dubai property prices over 16pc higher than last year

Dubai real estate rebounded in 2012 after a severe financial slump, and values have been climbing ever since. The increase continued in May 2013, with prices up 2.01 per cent month-on-month, according to the REIDIN sales price index. The figures, put together in conjunction with the Dubai Land Department, show that apartment prices increased 2.13 per cent and villa values jumped by 1.56 per cent.

The increases are steady on a monthly basis, but year-on-year data reveals the real extent of the market recovery, with overall prices up by 16.1 per cent compared to May 2012. Apartment prices have grown even higher, by 17.3 per cent, while villa values rose 12.2 per cent annually.

Rents are up too, by 1.8 per cent in May from April to leave rates 12 per cent higher than 12 months ago.

Abu Dhabi has also enjoyed price growth, although not to the same extent: REIDIN figures show that residential property values jumped 1.28 per cent in May from April, leaving prices 6.2 per cent higher year-on-year.

Rents edged up by 0.35 per cent on a monthly basis, but a decline in villa rents saw overall rates slide by 0.29 per cent compared to May 2012.