Market scales balancing out in UAE
The value of real estate in the UAE, particularly the disparity between property in Dubai and property for sale in Abu Dhabi, is becoming ever more blurred. Abu Dhabi has always exercised a strict balance between supply and demand, whereas Dubai has just gone with all out ambition.
The fall in property value has subsequently hit Dubai harder but as the picture broadens out, it seems that the frugality exercised in Abu Dhabi hasn’t helped either.
Abu Dhabi has better mortgage financing, a housing shortage, but a real need for regulation and transparency in the market. Dubai has the mortgage financing, but a huge glut of surplus stock. So what you gain in one emirate, you lose in the other. The net result is that the value of rent and property in each is reaching a point of balance, not only within the market but between themselves too.
What is clear is that investors are looking beyond the purchasing price, as quality of community services, facilities and location in respect of retail and leisure are key factors. This makes for a competitive edge and investors can only benefit from that.