Poll shows 50% will never buy property in the Gulf

HIGH COSTS: Half of those responding to an online poll said property prices in the Gulf would never be affordable.

Half of those responding to an online poll have said they will never buy a property in the Gulf because they are too expensive.

The survey by Arabian Business asked if people were tempted to consider buying a home in the region after news that property prices had fallen between 25 and 30 percent.

However, a total of 50 percent said they were not tempted by the price cuts and considered it an impossible goal to own a property in the region because of the expense. 

A further 25 percent also responded in the negative, saying they believed property prices would not hit rock bottom until next year.

A more positive 16 percent said the price cuts might encourage them to buy, but they would wait a few months to see if prices fell further.

Just, nine percent said they were actively searching for a property to buy at present.
 
Mada’in Properties based in Dubai was the decveloper that sparked last week’s debate after annoucing it was dropping prices by a third for new and existing customers.

“We have studied the market conditions and have formulated a strategy that deals with the past, the present and the future,” said Abdul Aziz Al Awar, CEO of Mada’in Properties.

“Bearing this in mind, we have made the decision to assist our customers in their investments, not only in good times, but also in the current market conditions. The construction costs have been reduced significantly allowing us to pass on the savings to our current customers,” he added.
 
Overall, Dubai real estate has dropped 25 percent from its September peak as a result of speculators leaving the market in the wake of the global downturn, and banks curbing their lending policies, according to Morgan Stanley.
 
In February, Dubai-based developer, Deyaar also announced it would reduce the price of properties bought during the real estate boom.

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READERS' COMMENTS

Positive Steps
Posted by Fiona, London, Dubai on Wednesday 11 March 2009 at 03:02 UAE time


Reducing prices for properties that now cost lest to build is a sure step to success. No one takes a loss and gains are passed on through the system.

If only more developers take up this tack we might actually see the market bottom out and even rise.

We will remember which developers took proactive steps and which did not. Who will get future business is then understood.

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