Average house prices in Dubai are now approximately AED2 million higher on average than in Abu Dhabi, reveals propertyfinder.ae.
The observation has been based on live market statistics from market price live – propertyfinder.ae’s data centre – and reflects the steadily increasing property prices in Dubai and the broad recovery that the emirate’s market continues to experience this year.
“Average asking rates in Dubai stand at AED5.1m today, while those in the capital are at AED3.3m. While Abu Dhabi’s property prices have increased over the course of this year, Dubai’s residential prices have risen more significantly, widening the gap in property values between the two emirates,” commented Renan Bourdeau, managing director and partner at propertyfinder.ae.
In contrast to 2008, Dubai’s price increases so far have been built on solid fundamentals, such as trade and tourism, impacting emerging neighbourhoods, such as Business Bay, Jumeirah Village Circle, Jumeirah Park and Dubai Sports City, in addition to prime communities, such as Dubai Marina, Downtown Dubai and Palm Jumeirah.
Additionally, the UAE Central Bank’s latest mortgage cap and doubling of property registration fees from two per cent to four per cent are signs that the market is becoming better regulated and less susceptible to speculative activity.
“In January this year, average property prices in Abu Dhabi were valued at AED2.3m, which is AED1m lower than the current average price. So, while the market is showing positive growth, recovery seems limited to prime neighbourhoods, unlike Dubai where the pace of growth has been widespread,” adds Bourdeau.
Established in 2007, propertyfinder.ae, propertyfinder.qa and propertyfinder.eg are a leading group of property portals across the Middle East region dedicated to creating the largest real estate community of buyers, sellers, renters, brokers and developers.
The group recently caused a marketing stir with its ‘Keep Calm There’s No Bubble’ advertisement, visible from Sheikh Zayed Road.
Michael Lahyani, CEO and founder of propertyfinder.ae told CPI Financial: “We’re not trying to make a statement here and sound as if we know better than anyone. Whether there’s a bubble in the real estate market or not, only time will tell. All we want to do is simply kick-start the debate and encourage people to share their views online, on social media. Whomever thinks we’re encouraging rising prices probably missed out on our touch of sarcasm and need to re-read our advertisement with a smile.”
Tuesday, November 19- 2013 @ 9:48 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.