dubai property market may be bottoming out
News Posted On: 28 September 2011
According to Jones Lang LaSalle the property market in Dubai may finally be on the verge of bottoming out. The firm points to turmoil in North Africa and the Middle East prompting buyers to look for safer investments.
Prices of apartments are stabilising or only declining slightly, said the report, and villa sales have increased by 59% by value. This a clear sign that higher end properties are proving to be the most attractive according to the firm. However this renewed interest hasn't yet resulted in increases in property prices.
Prices of homes in Dubai have dropped by up to 64% since their peak in the middle of 2008. But the United Arab Emirates has largely avoided the Arab spring, which disrupted investment in other countries in the area. This has had multi-faceted benefits to nearby Arab and Muslim countries like the UAE and Turkey, including increased tourism, hotel stays, and property investment.
The worry is that this recovery could be somewhat delayed due to the slowing economic growth in Europe and the United States. Not to mention the large backlog of stock to come online in Dubai in the near future.
Prices of villas have already increased in some areas in the emirate, but experts don't think this will extend to the broader residential market this year, and only next year dependent on economic growth and end-user demand according to the firm.
View property for sale in UAE
Written by Les Calvert
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