By Romesh Navaratnarajah:Dubai has been named the world's strongest housing market, with its residential property index climbing 13.46 percent in 2012 compared with a 1.8 percent decline in the previous year, according to Global Property Guide.
The report also revealed that Singapore fell 2.88 percent, while Tokyo and the UK dipped 1.94 and 3.97 percent respectively.
"Even the steady and consistent growth to pricing we have seen in the past year in Dubai is truly impressive when placed alongside the international markets. While we still predict a more stable growth pattern through 2013, Dubai's property market is certainly again considered one of the best locations in world for real estate investment," said Niall McLoughlin, Senior Vice President at DAMAC Properties.
Meanwhile, Dubai was named the favourite destination for foreign investors looking to boost their income in Jones Lang LaSalle's 2012 Middle East and North Africa Real Estate Investor Sentiment Survey.
International investors flock to Dubai primarily because of its tax-free system for both the capital gains on sales of any property and on rental yields.
"Many global investors are looking to spread the exposure of their portfolios and the Dubai property market is proving to be a key investment vehicle, not only for 'institutional investors' but also individuals who recognise the medium to long term gains available in a strengthen real estate market."
As Dubai's tourism continues to grow by as much as 10 percent each year, "more international clients interested in real estate will recognise the emirate as a safe and profitable destination in which to invest", McLoughlin added. Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email firstname.lastname@example.org Related Stories: Bumper month for UK property exhibitions
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