By Andy Sambidge
New research by propertyfinder.ae says a studio apartment in Dubai costs average of $261,000 in Q2
The average price of a studio apartment in Dubai stands at AED959,000 ($261,094), according to new research by the UAE's property search website, propertyfinder.ae.
The website also revealed that an average one-bedroom apartment in the city costs AED1.7 million and a two-bedroom apartment carries an average price tag of AED3 million.
Its research also showed that the most searched communities in Dubai among prospective buyers is Dubai Marina where the average apartment price is AED2.8 million and AED8.5 million for a villa.
The research comes as Dubai's real estate market continues to be one of the world's best performing with annual price increases of around 25-30 percent.
"Dubai Marina has been at the top of our rankings for over 2 years now - no small feat in a city like Dubai where new developments are being launched every other week. The community is where everything is at - business centres, beaches, entertainment, gorgeous views, stylish pads and hip nightlife," said Renan Bourdeau, deputy CEO of propertyfinder.ae.
Bourdeau added that Dubailand is growing in popularily among prospective buyers, claiming fourth spot in the second quarter of 2014 despite not figuring in the top 10 two years ago.
Propertyfinder.ae said asking prices for apartments in Dubailand stand at AED1 million while villas cost AED5.3 million.
According to propertyfinder.ae's latest report, Dubai Marina was also the most searched community on the site for renting property in Q2, despite rises in rents.
On average, tenants can expect to pay AED66,000 for a studio, AED106,000 for a one-bedroom pad and AED172,000 for a two-bedroom unit in Dubai.
Can anyone explain what metrics are being used to justify this massive increase?
The Expo is not an answer since that will not result in any significant amount of migration to Dubai other than labourers.
This will result in more empty properties, ghost buildings and for those that don't leave, will be pushed out to Sharjah and Northern Emirates. I expect that, in addition to the current "fees" levied on just about everything beginning to creep into the UAE, I suspect that we will be paying taxes prior to 2020 to boot. I actually am beginning to miss life here during the global downturn.
Asking and actual selling prices are two very different things. Volumes on completed units are significantly down after a 2 - 3 yearly quarter rally without any foundation, so something has got to give.
I see the propertyfinder.ae (deputy) CEO is desperately trying to defend the ridiculously out of kilter prices which have made the property market stagnate over the last couple of quarters.
Don't forget this is the same company who put up a massive banner on the side of a building in Dubai Marina denying the existence of a beginning bubble last year...
Like the man whose name you shouldn't say out loud told us already their index is bogus considering it is based on asking prices.
The Global Bond market is starting to wobble. Somehow Belgium recently bought the equivalent of its GDP in US Treasuries. That is an almost impossible feat unless 'assisted'. The Mainstream Media are not reporting it but others are.
The BRICS nations have now set up their equivalent to the IMF/World Bank and will NOT trade in the USD$. BRICS are supported by 105 nations...its not just the BRICS nations themselves. Many nations are now doing cross lateral trade agreements to circumvent using the USD$, including Japan, China, Russia, Asia and others.
That is not good for the USD$ or the US Govt or the global Bond market. If the Bond market goes...everything will go with it. The writing is on the wall. None of the QE done by the USA has worked...or in Europe. All they have done is got further into debt with no upside.
What does that mean for Dubai? Well, lets just say, fundamentally, 2008 never really left us. People know it in their pockets, if not intellectually in the mind
Coming out of Retail can say that we have just gone through a very tough few quarters. Rent and property prices are driving inflation short term. Not regulating a free market will drive prices and interest short term but will bring us back to square one as we can already see happening
The villa we rent in a prime area has been on the market for 6 months. Not one buyer has asked to look. Its all very well talking about average prices however a survey needs to be done showing asking vs sale price, so in affect we can see what is actually being sold at whatever price asked then we can compose true average prices. We also need to look into the speed of the churn here, ie how quickly are people buying & selling and again at what price vs asking. Only then will you have a real picture of the market. Dubai has every right now to be considered a premium location ref living here as most boxes are ticked but lets just get a true outlook as nobody wants another recession.
Dubai property market expected Ramadan to be slow as it always have been in the past. But now after ramadan we will see desperate sellers coming in the market. The main buyers in the market already have properties in the Dubai market and would not increase their exposure. Another reason for market to go down is the increase in new off plan deals. This time unlike last time the off plan properties are cheaper than ready buildings. But the sane investor will not go for this trap this time. But the people who like to make easy money will lose again here. Besides this I see Dubai becoming more and more expensive place to live everyday. If the expatriates will end up saving less money here in Dubai then they would rather stay in their own countries being first class citizen with respect. My conclussion is if you have property try to sell and see what happens and you will get real pic yourself. I just want to save my brother and sisters here from any heavy financial loss here