Abu Dhabi may record decline in property prices in the coming months as compared to the neighboring Dubai. An analysis from property advisors Tasweek Real Estate Marketing and Development projected decline in gap in property value between Dubai and Abu Dhabi.
A recently released report adds, "The rent differential between the two has resulted in a significant proportion of cross emirate migration. If this trend continues then it will exert further downward pressure on prices and rents in Abu Dhabi, at least narrowing the difference between the two in the medium term."
The report states that location, quality of construction, community facilities, completed infrastructure, and availability of competitive financing solutions would be the yardsticks for determining property rates in the Middle-East. Property prices in 2010 would decide the fate of property rates in the region as World economy has been showing signs of recovery.
There is no dearth of mortgage financing and short and medium term loan supply in Abu Dhabi. Tasweek believes that substantial real estate activity in the future would depend on private equity groups and large institutional investors.
