Dubai property prices AED2m higher than Abu Dhabi

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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.”

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Posted by: rob

''Rampant Dubai house price growth starts to cool''

''Dubai?s realty market in cooling off mode''

Seems like its already over folks

Posted by: PPM

And, yet again, we sit here wondering why AB - supposedly driven by a focus on "business" - is still publishing this pap as if it was business news.

Please.. let's have an "Arabian Property" for the hopelessly optimistic, the hot money movers, the deluded and - occasionally - the astute property people to gossip themselves to death over and leave ALL property related items out of AB in future.

Posted by: Still Not Buying

''Really, this is little more than 30 seconds sales patter and anyone who invests a single fill in the real estate sector based on Mr. Bourdeau's 'research' is an idiot. ''

So true, its funny how nothing seems to be actually selling but keeps going up in price, if you do your research you will find the answer for this so called false increase in prices to try and stimulate a dead cat bounce.

All the best.

Posted by: DRB1

So an estate agent has done all his investigations and research and has concluded "all is fine", and "there is no bubble" and the sky high real estate prices are "built on solid fundamentals"; meanwhile the same estate agent makes a pile of cash from selling property and desperately hopes it will continue ad infinitum.
I wonder if Arabian Business would publish an article on the reliability of the fine cars produced by BMW, investigated and researched by, say BMW? Or would a report concluding "its a great idea", "based on solid fundamentals" to invest in Bernard L. Madoff Investment Securities LLC, authored by Bernard L. Madoff be similarly newsworthy?
Really, this is little more than 30 seconds sales patter and anyone who invests a single fill in the real estate sector based on Mr. Bourdeau's 'research' is an idiot.

Posted by: Mark X

Excellent. You've hit the nail on the head. There are so many "Self Appointed Experts" or "Jack Asses" here in UAE churning out spin out of their orifices for their self interest. Need I say more?

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