Dubai property prices continue to skyrocket with the average house price now almost AED 2mil ($544,500) higher than prices in Abu Dhabi, according to a fresh analysis by propertyfinder.ae.
In a release on Tuesday, the leading property portal said the observation was based on live market statistics from Market Price Live, propertyfinder.ae’s up-to-the-minute data centre.
It reflected the steadily increasing property prices in Dubai and the broad recovery that the emirate’s market continues to experience this year, it said.
“Average asking prices in Dubai today stand at AED5.1mil ($1.39mil), while those in the capital figure at AED 3.3mil ($898,000),” Renan Bourdeau, Managing Director and Partner at propertyfinder.ae, said. “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.”
In its analysis, propertyfinder.ae said in contrast to 2008, Dubai’s price increases so far had been built on solid fundamentals such as trade and tourism.
It had impacted 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 2 percent to 4 percent were signs that the market was becoming better regulated and less susceptible to speculative activity, it said.
“In January this year, average property prices in Abu Dhabi were valued at AED2.3mil ($665,000) , which is AED1mil ($272,000) lower than the current average price,” said Bourdeau.
“So, whilst the market is showing positive growth, recovery seems limited to prime neighbourhoods, unlike Dubai where the pace of growth has been widespread.”