Propertyfinder.ae reports that average asking prices in Dubai are higher than those in Abu Dhabi, the two property powerhouses of the United Arab Emirates. Average asking prices in Dubai are at AED5.1 million while those in Dubai are AED3.3 million, making for a nearly AED2 million difference. Prices have been increasing in both cities, but Dubai’s have jumped much faster. Further, experts say that growth in Abu Dhabi has been limited to prime markets whereas Dubai’s growth is more widespread. For more on this continue reading the following article from Property Wire.
Property prices in Dubai are continuing to rise and the average value of a home is now almost AED2 million higher than prices in neighbouring Abu Dhabi, according to data based on live market statistics from real estate portal property finder.
The firm says the emirate is seeing steady growth as a broad recovery continues. ‘Average asking prices in Dubai stand at AED5.1 million while those in the capital figure at AED3.3 million,’ said Renan Bourdeau, managing director and partner at propertyfinder.ae.
‘Whilst 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,’ he added.
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The firm believes that in contrast to 2008, Dubai’s price increases so far this year have been built on solid fundamentals such as trade and tourism.
Those seeing the steepest rises include areas 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 2% to 4% are signs that the market was becoming better regulated and less susceptible to speculative activity, it said.
Bourdeau pointed out that in January this year average property prices in Abu Dhabi were valued at AED 2.3 million which is AED1 million lower than the current average price.
‘So whilst the market is showing positive growth, recovery seems limited to prime neighbourhoods, unlike Dubai where the pace of growth has been widespread,’ he added.
This article was republished with permission from Property Wire.