Dubai apartment prices increased by 12% in the first quarter of this year, while villa prices increased by 5%, according to local agents Asteco. By contrast villa rents were up by 4% compared to an average of a 3% increase for apartments.

Year-on-year rental price increases amounted to 19% and 21% respectively for apartments and villas, which local press report as ‘making an absolute mockery of Dubai’s recent inflation figures’, which showed a fall in the cost of living.

Discovery Gardens boasted the highest quarterly increase in selling price of 33% followed by the Jumeirah Beach Residence and Dubai Marina at 15% and 14% respectively. For villas The Meadows came top for price rises in the first quarter, up 10%, with Jumeirah Islands and Jumeirah Village joint second on 9%.

However, it is still a very different story for commercial property in Dubai with acres of empty office space though not always in the places occupiers want to buy or rent. DIFC and Sheikh Zayed Road office rentals showed no growth in Q1 while Jumeirah Lake Towers was popular and up 20%, the highest rental gain.