Dubai real estate prices and rents have seen their 16th consecutive monthly hike in March, continuing the steady recovery in the sector and highlighting the return of investor confidence in the emirate, said a report.
   
The property rates rose by 1.5 per cent from February to March with increase recorded across most areas, while prices and rental values remain significantly below their peak of 2008, according to banking giant Deutsche Bank. 

The apartment prices remained between 43 and 61 per cent below peak with villa prices between 12 per cent and 49 per cent below peak prices, the report stated.
 
According to Deutsche Bank, the rental values showed similar trends. "These figures take the year-to-date growth in property prices to over 6.2 per cent. Apartment prices were up by 1.5 per cent while villas were up 1.6 per cent."
   
Despite this recovery, the shares of real estate developers trade at a discount to emerging markets and world developers, according to the report.   

According to the report, the growth in prices and investor confidence continues despite increased supply. "Since the second half of 2011, Dubai has witnessed a spurt in project launches including those by master developers such as Emaar, Nakheel and Damac."

Nakheel has restarted various projects while Emaar recently pre-sold four projects with over 1,000 units sold overnight with prime units selling at a 40 per cent premium to market prices reflecting trends seen around the world.

Emaar has now announced another project in Downtown Dubai which has gone on sale, the report added.

Commenting in the report, research analyst Athmane Benzerroug said, “The price recovery that started in late 2011 in prime properties is now spreading to second tier communities. Despite new supply, investor confidence remains strong, while main master developers are accelerating project launches.”
 
"Despite the growing confidence in the market and the 1.9 per cent increase in share prices seen in March, UAE developers continue to trade at a discount to emerging markets and global developers," stated Benzerroug.

“On a price to book value and a price to earnings multiple, UAE developers trade at a discount to emerging markets and international developers.  The Emirati developers are trading at a 0.6x 2013 price to book value versus 1.0x for emerging markets and 1.4x for world developers,” he added.-TradeArabia News Service