Rents for villas and apartments in established communities and prime buildings across the emirate also rose 10% and 9%, respectively, the report said.
Building on momentum that began in the end of 2011, Dubai’s residential market “looks to have bottomed out”, with villa prices and rents in established locations expected to continue to rise in the coming months, JLL added.
“The villa market began to see some uptick towards the end of 2011 and this trend has continued into 2012. As of May 2012, villa sale indices have increased by 21% y-o-y and are now 9% higher than early 2008 levels,” the report said.
Villa rents have also increased 5% compared to the levels of January 2009 and are almost back to their peak levels, the report said. By comparison, apartment rents are 30% lower relative to January 2009 levels, the report said, but they are expected to continue to rise over the remainder of this year.
Meanwhile, apartment sale indices remained stable (up by one per cent y-o-y), but remain 18% lower compared to January 2008.
The report noted that while prime residential assets in well-established locations continue to see improved performance, secondary buildings and locations are still suffering from rental and price declines.
In the second quarter, nearly 3,000 new residential units were added to the market, taking the total inventory to around 344,000 units.
Notable projects handed over in this quarter included The Villa phase three in Dubailand, two towers in Dubai Marina, three buildings in Dubai Silicon Oasis and a complex of 26 buildings in International City.
International City has the largest proportion (16%) of residential supply completed since 2009. Dubai Marina, Discovery Gardens and Jumeirah Lakes Towers are other submarkets that have witnessed increases in residential stock.
Based on estimates from developers, JLL says a total of 24,000 additional units are currently scheduled to be delivered in the second half of the year.
The main locations expected to see new completions in the coming six months are Al Furjan (4,000 units), Jumeirah Village (3,400 units), Dubai Marina (2,300 units), Dubai Sports City (2,200 units) and Dubai Silicon Oasis (1,800 units).