* Dubai house prices 15 pct short of pre-crisis peak
* Prices expected to continue rising, but slower than last
* 27,000 new homes due to be built this year
DUBAI, Feb 10 Dubai house prices are only 15
percent short of their 2008 peak and will return to those
pre-crisis highs within 18 months, consultant Jones Lang LaSalle
(JLL) said on Monday.
The emirate outpaced all major property markets last year,
with prices climbing more than 22 percent as billions of dollars
of government real estate projects triggered a buying binge
The fast growth, however, has raised concern about a
potential repeat of the property market bubble that sent prices
plunging by more than 50 percent after the 2008 financial
"We are expecting prices to get very close to pre-crisis
levels by the end of this year. It has already reached that
level in some locations," Craig Plumb, JLL's head of research
for Middle East and North Africa, said at a conference to
release a report on trends in United Arab Emirates real estate.
"We are likely to be back to those levels in the next 18
months," Plumb added.
The International Monetary Fund warned in January of a
potential bubble if huge government projects are not executed
Investors, however, are more cautious and new government
regulations to control speculative buying has reduced the risk
of another bubble, the JLL report said.
JLL added that prices will continue to rise in 2014 but not
as fast as last year.
Rents for newly leased homes in Dubai will grow in the range
of 10 to 20 percent, Plumb added.
JLL said that 27,000 new homes are due to be built in 2014
as developers complete projects that were shelved over the past
"Not all will get built on time. So we can say at least
20,000 units will enter the market," Plumb said.
(Reporting by Praveen Menon; Editing by David Goodman)