Dubai saw an increase in property prices as opposed to Abu Dhabi where prices decreased.
Data concerning real estate in Dubai and Abu Dhabi has revealed that Dubai real estate prices increased in May in comparison to the prices that were recorded in April.
Property prices in Dubai rose by 1.42 percent in May compared to those that were seen the previous month according to the data by REIDIN. On the other hand, prices in Abu Dhabi declined by 1.1 percent.
The news comes after Oxford Business Group (OBG) claimed earlier this week that the property market in Dubai has grown, stating that the residential sector has ‘posted solid growth over the past few months.’
The price of property in Dubai soared a decade ago after the real estate sector was opened to foreign investors with a boom in prices in 2007 and 2008 of around 80 percent. However, the financial crisis meant that developments slowed down with house prices declining by around 60 percent, but the latest research and data is pointing to signs of improvement.
OBG regional editor, Oliver Cornock said: “While the rate of growth given by different agencies may vary to some degree, all point toward a slow but steady recovery in Dubai’s residential property market.”
He added that investor confidence has been improved by the proposal of a new law put forward by the Dubai Land Department (DLD) improving the rights of owners.
Mr Cornock said: “Under the draft Investor Protection Law (IPL), which could be enacted this month, the rights of owners will be reinforced, including their ability to cancel their contracts if the developer does not provide all the facilities and services listed under the buyer’s agreement, or if property is not handed over within the designated eight month period.”
There has also been an improvement in rental values in Dubai where rents have increased by 0.83 percent. Abu Dhabi also saw a monthly rise in rents of 0.53 percent.