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Tue 8 Oct 2013 02:54 PM

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Palm 3-beds see biggest price rises in Dubai in 2013

New data from dubizzle reveals 29% increase in larger Palm Jumeirah apartments since Q1

Palm 3-beds see biggest price rises in Dubai in 2013

New figures released by dubizzle reveal that three-bed apartments on Palm Jumeirah have shown the biggest rise in advertised price over the past six months.

The Dubai-based website's analysis of the UAE property market showed prices for larger Palm flats increased by 29 percent in the third quarter of 2013 compared to Q1.

In Abu Dhabi, Al Raha Beach three-bed properties show the largest hike in price from Q1 to Q3 at 30 percent, dubizzle said.

Its report said several factors attributed to the price increases in Dubai and the UAE capital such as an ongoing stream of new launches by key developers in Dubai and the “live local” policy in Abu Dhabi.#

It added that efforts to cool down the market with the doubling of the property registration fee in Dubai and the long awaited verdict of whether Dubai will hold the Expo 2020 were likely to have implications on the property prices in Q4.

"Over the past year dubizzle has seen shifts in the average advertised prices from quarter to quarter, in most cases reflecting an uptrend," dubizzle said.

"Q3 too showed an increase in advertised prices across Abu Dhabi and Dubai," it added.

Ann Boothello, a property marketing specialist at dubizzle, said: “The 'live local' policy in Abu Dhabi surely carries some weight in influencing the rental price increases.

"In addition to this the Abu Dhabi government has invested heavily in infrastructure developments, creating new jobs and partly influencing the price increases as well."

In Dubai, the demand by investors for selective off-plan projects launched by trusted developers has also had much to do with the price increases, dubizzle's report said.

It added that many end-users have had to re-think their plans of buying a home in Dubai, with several having backed out of the buying process after authorities announced plans to double the property registration fee.

Boothello added: "This and talks about Dubai winning the Expo 2020 bid will surely affect the price trends for Q4. For investors who are betting on Dubai winning the Expo 2020 bid, the four percent fee will most likely not be a hindrance.

“We are keen to see how these two factors will reflect on our price stats next quarter."

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