dubai property market still in the doldrums
News Posted On: 10 August 2010
Well, it seems that things still aren't improving in the Dubai property market. According to the latest index from Colliers prices fell 4% in the second quarter. Colliers recorded rises in the third quarter of last year and the first quarter of this year, broken by a fall in the fourth quarter of last year.
The oversupply problem is massive and set to get bigger, before peaking in 2012 according to some analysts. But with so many vacant properties and half-finished developments no one wants to buy there, and it is hard to see the oversupply ever being swallowed up for some people.
That said: the wealth in the region made Dubai attractive to foreign workers once, and it will do so again, it is just difficult to imagine that happening before the debt cloud is lifted on the government owned companies, and that won't happen until at least 5 years.
Speaking of government owned companies, Nakheel will have been pleased to hear that Austrian developer and owner of six islands on "The World" development -- man made islands representing countries in their place on the world map -- Josef Kleindienst has began preparing to develop several of his islands.
Kleidienst is building a replica of a European city, with a climate controlled street on the island representing Sweden, a Beach Bar on the island representing Monte Carlo and Hotel/Villa/Apartment developments on St Petersburg, Austria and Germany.
According to the firm's reports, they have sold 12 villas on Germany already at a cost of between 1.5 and 5.5 million US dollars. If this development is successful it will likely be followed by others, and could start a revival in luxury demand in Dubai.
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