Dubai property market leaves Abu Dhabi in the dark

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Dubai’s residential property market is recovering as rents and values increase, however residential rates in Abu Dhabi have dropped significantly.

Property consultants Asteco have released market reports which show the differing circumstances in Dubai and neighbouring Abu Dhabi.

Sale prices for villas in good locations in Dubai have increased by as much as 16% in the last quarter, while the average price has risen between 6% and 8%.

Apartment rents in Dubai have risen 6% throughout the second quarter of 2012, when compared to the previous quarter. The average rent for a villa increased by 9%.

Elaine Jones, chief executive officer at Asteco, said: “After three years of declining rats and limited sales activity, the Dubai real estate market is on the way to recovery, with established quality communities showing increases in values and high transaction volumes.”

When compared to the first quarter of 2012, the rental rates for apartments in Downtown Dubai and Dubai Marina increased 10% throughout the second quarter.

Jones added: “Tenants are relocating in search of value for money. One and two bedroom apartments as well as there and four bedroom villas are the preferred unit types. In terms of rates, quality well managed developments, will continue to set the pace.”

Jones also claimed that overseas buyers are attracted to good value properties that are outside of the eurozone where the economic crisis is still escalading.

While property in Dubai is showing strong signs of recovery, the picture is quite different in Abu Dhabi where residential rates have fallen by as much as 15% in some areas in the second quarter of 2012.

Rental rates have also dropped, with the greatest slump occurring in Marina Square which had rates decline by 15%.

Transferring money to Dubai

If you are looking to invest in Dubai, think carefully regarding how to send money abroad. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So, if you are sending money to Dubai – which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.

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