Cooling measures slow down soaring dubai prices

Photo credit: Chusico

The agency's latest report shows that in the final quarter of 2013, prices grew 15 per cent year-on-year, a large amount, but a relatively moderate increase compared to the preceding four quarters, when annual growth averaged a staggering 21 per cent.

Cooling measures introduced range from mortgage caps to doubled transfer fees in an attempt to deter speculative investment in the emirate's thriving property market.

Growth is expected to reach 10 to 15 per cent, though, this year, as constrained supply of apartments helps to push values up. Knight Frank notes that apartment prices remain approximately one-third below the previous peak, giving them to catch up to the market norm.

Dubai real estate has lost little of its appeal, though, with the Bureau of International Expositions deciding to award the emirate the World Expo 2020, an indication of the industry - and investors' - confidence in the market's future.