dubai property cited as being on the verge of recovering finally
News Posted On: 05 October 2011
Yet another report thinks that the Dubai property market could be on the verge of a recovery. In the second quarter villas in prime locations increased in value by 1%, and rents by 0.7% compared to Q1, according to a report by Cluttons. Their report found that property in desirable areas has held its value or increased slightly, even though the early part of the year had been marred by uncertainty in the region.
However their report does caution that price rises and increases in rent have not been reflected across all sectors, as apartments are still seeing price instability due to continuing oversupply. This will worsen as a further 10,000 to 15,000 new units are expected to be completed by the end of 2011. Apartment rents decreased by 2.5% compared to the second quarter in the majority of locations.
This is the second recent report to say that property prices may have finally bottomed out in the emirate, as Jones Lang LaSalle has already commented that villa prices have increased by 59%, even though volume has fallen by almost a third. This, they said shows that prime property is proving to be most attractive to buyers.
According to property experts, those projects that are most attractive to buyers are in areas with finished infrastructure and community facilities, and these are most likely to realise the benefits from increased activity in the market.
Prices in the emirate have dropped by around 60% since the beginning of the global crisis, and many projects have been put on hold or cancelled. Some developers are struggling to repay bank loans and contractors are now focusing their attention on providing property which actually meets customer's needs.
View UAE property for sale
Written by Les Calvert
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