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Discuss this article (12 Comments)UAE real estate prices back to 2006 level - expert
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 04 June 2009
PRICE LEVEL: Propertyfinder.ae says the cost of buying a home in the UAE has returned to 2006 levels. (Getty Images)
House prices in the UAE are now at a level similar to 2005/06, according to propertyfinder.ae, a real estate website.
The comparison was made as the website released details of the UAE’s top locations sought after to buy and rent for May.
The survey, based on the views of more than 120,000 visitors to the website over the month, showed Khalifa City in Abu Dhabi to be the most popular place to rent with more than 20 percent of the total inquiries.
The Springs in Dubai retained its position as the most sought after place to buy with 27 percent of the total website traffic.
Commenting on the survey results, Marcello Sambartolo, head of marketing at propertyfinder.ae, said: “May’s survey is confirming a pattern of price sensitivity. People are chasing the best rental deals with the best options and the location is secondary, within reason.
"This is also driving prices to be more competitive in areas where previously thought to be immune. The pricing levels are now sitting around the same as they were in year 2006 - and in some areas, year 2005.
"We are seeing areas in Abu Dhabi gaining momentum in popularity for a variety of reasons. On the buying side, the usual suspects are keeping their ground. Sought after areas are now beginning to sell at reasonable prices, still high from a global perspective but definitely not exaggerated."
Also popular for rentals in May was Al Barsha with 12 percent of inquiries, followed closely by Dubai Marina.
Discovery Gardens in Dubai was the second most popular place to buy in May with almost 20 percent of website visitors choosing it, followed by International City (15 percent).
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
about right
Posted by HD on Sunday 7 June 2009 at 12:53 UAE time
'06 prices sounds about right. I know some people will argue based on what they see, but as we all know you can see the same properties rented out with a large difference in price for many reasons such as; the renter didnt do their research, or did not have time to look around.. etc.
I have been here 6 and a half years and have lived in 5 different places and currently am moving into the 6th, wanting to take advantage of the current pricing. Have compared prices all over the city for the last 6 months and as an example have found dozens of 2 bedroom apartments in the marina and palm going for 90-125k per anum.
The apartment im moving into this week is 104k per anum and over 1700sq ft, where as in the beginning of 2007 i rented a much smaller 2 bedroom with far lower quality in JBR for 125k.
to me, this shows that yes indeed 05-06 pricing is here, and you cant see it.... then you are blind.
Posted by HD on Sunday 7 June 2009 at 12:53 UAE time
'06 prices sounds about right. I know some people will argue based on what they see, but as we all know you can see the same properties rented out with a large difference in price for many reasons such as; the renter didnt do their research, or did not have time to look around.. etc.
I have been here 6 and a half years and have lived in 5 different places and currently am moving into the 6th, wanting to take advantage of the current pricing. Have compared prices all over the city for the last 6 months and as an example have found dozens of 2 bedroom apartments in the marina and palm going for 90-125k per anum.
The apartment im moving into this week is 104k per anum and over 1700sq ft, where as in the beginning of 2007 i rented a much smaller 2 bedroom with far lower quality in JBR for 125k.
to me, this shows that yes indeed 05-06 pricing is here, and you cant see it.... then you are blind.
I agree with Geriant
Posted by Dude, Dubai, United Arab Emirates on Friday 5 June 2009 at 15:36 UAE time
I fully agree with Geriant comment: visitors to site, search results, inquiries, and all statistics on a website is not enough to use to conclude that there is adjustment to 2006 levels. Only confirmed rents and confirmed sales should be used to make such important conclusion.
Posted by Dude, Dubai, United Arab Emirates on Friday 5 June 2009 at 15:36 UAE time
I fully agree with Geriant comment: visitors to site, search results, inquiries, and all statistics on a website is not enough to use to conclude that there is adjustment to 2006 levels. Only confirmed rents and confirmed sales should be used to make such important conclusion.
report
Posted by AARKAY, dubai, UAE on Friday 5 June 2009 at 14:21 UAE time
Hey Geriant. You are absolutely right. Its incredible that there are no reliable reports on transaction and prices which can support the real estate sector. At present all you can see is supply which is 2 to 3 times that of demand and no sign or policies which will result in the increase in demand.
Recent visa policies are only bound to exacerbate the situation by encouraging silver hair residents who had bought in the hope of spending their retirement years in DUBAI; to dump their properties and opt for more sensible parts like Malaysia; where the program encourages and offers PERMANENT RESIDENT status to investors... we should all get ready to see more apathetic sentiment and hence a lacklustre performance of this important sector..
Posted by AARKAY, dubai, UAE on Friday 5 June 2009 at 14:21 UAE time
Hey Geriant. You are absolutely right. Its incredible that there are no reliable reports on transaction and prices which can support the real estate sector. At present all you can see is supply which is 2 to 3 times that of demand and no sign or policies which will result in the increase in demand.
Recent visa policies are only bound to exacerbate the situation by encouraging silver hair residents who had bought in the hope of spending their retirement years in DUBAI; to dump their properties and opt for more sensible parts like Malaysia; where the program encourages and offers PERMANENT RESIDENT status to investors... we should all get ready to see more apathetic sentiment and hence a lacklustre performance of this important sector..
People do not understand the meaning of fluctations
Posted by Khizer Ansari, Karachi, Pakistan on Friday 5 June 2009 at 13:39 UAE time
The above two comments seem to be coming from those who havent had the opportunity to invest anything in the previous property boom and my Common sense says that in the next wave of property appreciating its value starting from September when they will see property pick up high momentum, they will still not invest anything.
The comments from these people are baseless and if they had invested anything it was most probably a speculative investment with zero returns
If you really want to know how the market works, talk to the right people...and you will then know how to make money in real estate.
Regards
Posted by Khizer Ansari, Karachi, Pakistan on Friday 5 June 2009 at 13:39 UAE time
The above two comments seem to be coming from those who havent had the opportunity to invest anything in the previous property boom and my Common sense says that in the next wave of property appreciating its value starting from September when they will see property pick up high momentum, they will still not invest anything.
The comments from these people are baseless and if they had invested anything it was most probably a speculative investment with zero returns
If you really want to know how the market works, talk to the right people...and you will then know how to make money in real estate.
Regards
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