Dubai property demand flat amid global slowdown

Dubai residential property demand was flat in October according to broker Asteco as a global economic slowdown saw further weakening of international real estate markets.

“On the secondary market, the last week has been flat and not a lot has happened. We are getting sales but about half to three quarters of what it was two months ago,” said Andrew Chambers, managing director of Asteco.

Other agents have reported a decline in prices in some locations.

Timur Usmanov, a real estate agent for Dubai-based Monshaat Properties, said he has seen declines of up to five percent across Dubai in the last month.

"Investors are confused and they think prices will drop," Usmanov said.

The global financial crisis has hit demand from foreign investors, which make up a large percentage of property buyers in Dubai, while tightening liquidity has made home financing more difficult, agents said.

Local mortgage providers have slashed home financing from 90 percent to as little as 60 percent in recent weeks.

Recruitment consultant Ellie Rankin, who has been trying to sell her one-bedroom apartment in Dubai Marina, said she has not seen the interest she had hoped.

"[My apartment] has now been on the market for a couple of weeks... I expected more interest more quickly,” she said.

Media professional Phil Smith, who also owns a one-bedroom apartment in Dubai Marina, said his property has been on the market for over a month and that he has received only one offer that was below his asking price.

Dubai was the first UAE emirate to open up its property market to foreign investment in 2002, triggering a six-year boom. Real estate broker Colliers International said earlier this month Dubai house prices rocketed 76 percent in the year to June.

Colliers’ House Price Index for Dubai showed house price growth slowed from 42 percent in first quarter to 16 percent in the second quarter.

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