DUBAI, Sept. 4 (Xinhua) -- The house prices in Dubai are rising on the back of strong demand and much-improved economic fundamentals, said a study conducted by British bank Standard Chartered on Wednesday.
The uptrend which has been developing since 2011 in the emirate 's housing market until now is driven by "improving fundamentals of the Dubai's economy and improved confidence," according to the study of the bank, also known as StanChart.
StanChart Global research analyst Carla Slim said the current positive fundamentals could drive prices further up, with prices and investment feeding off each others.
About 55 percent of businesses were expecting higher sale revenues and 30 percent were expecting stable sales thanks to rising activity and volume, Slim said, quoting the business confidence survey of the first quarter, led by the Dubai department of economic development.
The second quarter marked the fourth consecutive quarterly increase in residential prices, said the study.
In the past 12 months, "residential prices have increased by 38 percent for apartments and 24 percent for villas, with rents increasing by 20 percent and 17 percent, respectively."
The report added that demand for housing is rising, due to Dubai's population growth. The city's population is the second- largest in the country, after the capital Abu Dhabi.
Regarding possible obstacles for future growth in the property sector, StanChart stated that although there was a risk that the rise in prices on fundamentals could change, "It is encouraging that regulators are drafting laws to curb excessive speculation in off-plan properties."