Off plan sales in Dubai 'practically non-existent'

Off-plan property sales in Dubai are “practically non-existent”, according to a new report released this week.

“State of the Market 2009”, published by Better Homes and Investment Boutique, warns that “off plan sales across the emirate are practically non-existent, and finished product is in demand mostly by end-users.”

The report adds that “there is still substantial room for price depression in order to meet true affordability levels.”

However, on a more positive footing, it suggests that “by the last quarter of 2009 prices are expected to hit a trough and the market is expected to gradually stabilise.”

The 100-page report was compiled over the past three months, and contains detailed analysis of the residential, commercial, retail and hospitality sectors.

“The report shows that we are going through very challenging times, where prices, targets and ambitions will have to be dramatically altered. This is a painful process,” said Better Homes managing director, Ryan Mahoney.

It comes just days after revelations in the new rental index from RERA of a sharp decline house prices across the emirate.

A three bedroom villa in The Springs should cost between AED140,000 and AED160,000 a year, a maximum of a 50 percent discount on the previous guideline rent of AED250,000 to AED280,000.

A two bedroom apartment in the Marina on old pricing levels was AED150,000 to AED180,000 a year. Tenants can now expect up to 36 percent fall in rent of AED120,000 to AED160,000, according to the index.

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