A recent study conducted by famous real estate firm Knight Frank found that property prices had spiked 9.2 percent in Dubai in the first quarter of 2013, making it the second-best performing real estate market in the world.
Prices rose 21.1 percent on a year-on-year basis and 18.9 percent when compared to a period six months ago. Moreover, prices of luxury villas spiked 20 percent in 2012, making it the second-highest luxury property price leader in the list.
Dubai's property market plummeted in 2008-09, when the global financial crisis hit.
These brilliant figures are a proof that the city's market is on a steady rebound. The recovery is attributed to the strong demand. A large number of properties are being developed in the area, especially in the commercial and retail sector to lure in wealthy investors and it looks like all the efforts are paying off.
Speculation on the city's accelerating growth pace that could lead to a bubble have also been plenty. However, experts believe that prices are still rising at a controllable rate and at that pace, a boom was far from imagination, reports Property Wire.
As the property recovery grows in Dubai, demand for auto parts and cars has also risen. Apparently, as more people come to live in the city, more automobiles are required for transit, according to Gulf News.
"As more projects launch, more people will come to live in Dubai. So, all these people need cars," said Ahmad Pauwels, CEO at Epoc Messe Frankfurt said to the Gulf News.
The Emirate city fared second in the list of places that surpassed expected growth rates. Hong Kong came in first with a 23.8 percent increase in property prices.
According to the index, global property prices rose in almost all the 55 markets tracked by Knight Frank, save some areas in the European region. Greece led the list of markets, with chronic price falls at 11.8 percent, followed by Hungary and the Netherlands, where prices fell 9 percent and 8.3 percent, respectively.
"Property prices in all world regions, except Europe, increased in the year to March with the Middle East performing best, rising by 10.6 percent on average," Kate Everett-Allen, International Residential Research expert at Knight Frank, said in the report.
