(MENAFN- Khaleej Times) The average house price in Dubai is now almost Dh2 million higher than prices in Abu Dhabi, according to a leading property portal propertyfinder.ae.
"Average asking prices in Dubai today stand at Dh5.1 million while those in the capital figure at Dh3.3 million. While 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," said Renan Bourdeau, Managing Director & Partner at propertyfinder.ae.
Dubai property prices have surged by up to 42 per cent in the past year with rentals up by as much as 23 per cent.
According to property consultant Jones Lang LaSalle, in the third quarter, villa prices in Dubai rose 14 per cent year on year, while apartment prices were up 15 per cent.
Asteco Dubai said in a report that although prices would increase further, it is unlikely that they will hit their 2008 peaks in the short to mid-term. The fundamentals that have been driving Dubai market upswing include political stability, trade links, a buoyant and diversified economy, regulatory infrastructure and an attractive tax environment.
Dubai's property market prices collapsed by over 50 per cent in 2009 after the global economic crisis. The IMF warned in July that overspending could leave Dubai vulnerable to another debt crisis if global market conditions deteriorated.
The latest observation by propertyfinder.ae, which was based on live market statistics from Market Price Live, the portal's data centre, reflects the steadily increasing property prices in Dubai and the broad recovery that the emirate's market continues to experience this year.
In contrast to 2008, Dubai's price increases so far have been built on solid fundamentals such as trade and tourism, impacting emerging neighborhoods 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.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.