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Discuss this article (27 Comments)Dubai rents to keep falling in Q3 - Landmark
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 23 June 2009
RENTAL FALL: Landmark Advisory sees rents continuing to fall in Dubai in the third quarter of 2009. (Getty Images)
Dubai rents will keep falling in the third quarter of the year, with the oversupplied apartment sector experiencing the steepest decline, according to real estate consultancy Landmark Advisory’s latest report.
Landmark said in its June guide for sales and leasing in the emirate that it expects further decreases in Dubai rents for the third quarter but that there are signs that rents are stabilising.
For potential home buyers, the latest price map from Landmark Advisory indicate that ‘distressed sale’ opportunities are largely finished, as sellers refuse to lower existing prices.
Related: Landmark rental index - June 2009
In some cases, buyers are paying increased rates for sought-after residential developments with limited homes available, according to the transaction-based reference map.
“Smaller villa developments with a limited supply that have tapped into sufficient value recognition among end-users with regards to location, layout, build quality and amenities/facilities are among those residential developments experiencing price increases,” said Jesse Downs, director of research at Landmark Advisory.
“Examples in the sales market include Jumeirah Islands and Green Community.”
Landmark said apartments had experienced a steeper fall in rental and sales prices than villas, and that this would continue to be the case.
The combination of the economic downturn and the completion of a large number of high rise apartments last year have resulted in an oversupply in that segment, it noted.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
The die hard illusionist.
Posted by Paul King, Dubai, UAE on Sunday 28 June 2009 at 09:45 UAE time
After returning from an empty Choithrams and upgrading using my air miles with no problem at all, i've taken Omar's advice and goggled for the latest news and found this: In the month of May, Japan's exports declined 40% year on year.
Yesterday came similar news from Europe. Industrial orders in the Eurozone dropped 35% in April, from the year before.
"Fed on hold as slump eases," reports The Wall Street Journal. What exactly is meant by 'slump eases' is unclear. As near as we can tell, the slump is getting worse.
"New home sales plunged 32.8%." Bloomberg reports that house prices in California and Las Vegas are being hit hard by a wave of foreclosed properties. Yes, dear reader, the anklebone is still connected to the leg bone.
Bloomberg also reports, "jobless claims are up."
A fellow loses his job; he can't pay his mortgage. The house goes onto the market and pushes down prices. Prices in California are off 30% year-to-year, with the median house at $267,000. In Las Vegas, the median house is only $135,000 with 75% of sold properties coming from foreclosures.
The housing market is slow. But it works like other markets. It reacts...then, it over-reacts. It shoots. Then, it over-shoots. One study we saw said that housing prices were now down to "reasonable" levels. But there's no law that says they can't go to unreasonable levels. They were very unreasonable two years ago; they're likely to be very unreasonable in the other direction before this depression is over. Hold on; maybe you'll be able to get the median house in California for $199,000.
The WSJ notices that the leg bone is connected to the knee bone too, "house price falls are cutting into economy," it says.
Well, what did you expect? That's what house price declines do. People feel poorer because they are poorer. And with no source of ready cash - they spend less. Then...the whole economy weakens...etc....etc....... sounds familiar to me..
Posted by Paul King, Dubai, UAE on Sunday 28 June 2009 at 09:45 UAE time
After returning from an empty Choithrams and upgrading using my air miles with no problem at all, i've taken Omar's advice and goggled for the latest news and found this: In the month of May, Japan's exports declined 40% year on year.
Yesterday came similar news from Europe. Industrial orders in the Eurozone dropped 35% in April, from the year before.
"Fed on hold as slump eases," reports The Wall Street Journal. What exactly is meant by 'slump eases' is unclear. As near as we can tell, the slump is getting worse.
"New home sales plunged 32.8%." Bloomberg reports that house prices in California and Las Vegas are being hit hard by a wave of foreclosed properties. Yes, dear reader, the anklebone is still connected to the leg bone.
Bloomberg also reports, "jobless claims are up."
A fellow loses his job; he can't pay his mortgage. The house goes onto the market and pushes down prices. Prices in California are off 30% year-to-year, with the median house at $267,000. In Las Vegas, the median house is only $135,000 with 75% of sold properties coming from foreclosures.
The housing market is slow. But it works like other markets. It reacts...then, it over-reacts. It shoots. Then, it over-shoots. One study we saw said that housing prices were now down to "reasonable" levels. But there's no law that says they can't go to unreasonable levels. They were very unreasonable two years ago; they're likely to be very unreasonable in the other direction before this depression is over. Hold on; maybe you'll be able to get the median house in California for $199,000.
The WSJ notices that the leg bone is connected to the knee bone too, "house price falls are cutting into economy," it says.
Well, what did you expect? That's what house price declines do. People feel poorer because they are poorer. And with no source of ready cash - they spend less. Then...the whole economy weakens...etc....etc....... sounds familiar to me..
I hope so but do not think so
Posted by Omar, Dubai on Saturday 27 June 2009 at 23:40 UAE time
I keep on hearing that prices will go down but my eyes confirm that nothing is going down in Dubai ( i am closely monitoring the real estate sections in Gulf News (i check and call daily). I keep on hearing that people are leaving very soon and that Dubai will be a ghost town within days but i only get frustrated by the incredible traffic that is getting worse day after day. I imagined that with +50, 90% of people would leave at least on Holiday but instead everything is FULL in Dubai.
All supermarkets are full even the Choithrams are full and i queue for 30 minutes to buy some things!All streets are full and to get out of greens i need 1 hour!!!!
They say after school but nothing happened but instead higher prices and more people, now they are saying 09/09/2009 when the metro starts the demographic scene of Dubai would change but i do not think so....
In Dubai, nothing goes down, only up.
They say Emirates is facing some turbulence but i can not use my miles that are due to expire very soon bcz whenever i want to book they say sorry all seats are full!!
I hope people who are saying that just leave - JUST DO IT PLEASE. I beg you. JUST DO IT.
Everything is going up in Dubai. FYI, not only in Dubai, house prices rose in UK for the last 4 months so was the case in the US (i have solid reports - plz google).
We only hope that prices will go down but we ALWAYS get disappointed with higher prices wherever we go.
Posted by Omar, Dubai on Saturday 27 June 2009 at 23:40 UAE time
I keep on hearing that prices will go down but my eyes confirm that nothing is going down in Dubai ( i am closely monitoring the real estate sections in Gulf News (i check and call daily). I keep on hearing that people are leaving very soon and that Dubai will be a ghost town within days but i only get frustrated by the incredible traffic that is getting worse day after day. I imagined that with +50, 90% of people would leave at least on Holiday but instead everything is FULL in Dubai.
All supermarkets are full even the Choithrams are full and i queue for 30 minutes to buy some things!All streets are full and to get out of greens i need 1 hour!!!!
They say after school but nothing happened but instead higher prices and more people, now they are saying 09/09/2009 when the metro starts the demographic scene of Dubai would change but i do not think so....
In Dubai, nothing goes down, only up.
They say Emirates is facing some turbulence but i can not use my miles that are due to expire very soon bcz whenever i want to book they say sorry all seats are full!!
I hope people who are saying that just leave - JUST DO IT PLEASE. I beg you. JUST DO IT.
Everything is going up in Dubai. FYI, not only in Dubai, house prices rose in UK for the last 4 months so was the case in the US (i have solid reports - plz google).
We only hope that prices will go down but we ALWAYS get disappointed with higher prices wherever we go.
Landmark Advisory
Posted by Mohamed Djirdeh, Dubai, UAE on Saturday 27 June 2009 at 02:02 UAE time
This what I was predicting all along.Dubai property prices and rents have not bottomed yet. May be mid 2010 we will see signs.
Posted by Mohamed Djirdeh, Dubai, UAE on Saturday 27 June 2009 at 02:02 UAE time
This what I was predicting all along.Dubai property prices and rents have not bottomed yet. May be mid 2010 we will see signs.
A racing certainty.
Posted by Paul King, Dubai, UAE on Thursday 25 June 2009 at 13:51 UAE time
Oversupply is producing deflation. Prices are falling as suppliers fight for demand by offering more for less.
This is what you'd expect at the end of a long period of credit expansion. Easy credit brought forth too much demand and too much supply. Now, the demand is disappearing...and the suppliers struggle to hold on.
Even now, we're facing an economy in which a high % of our economic output depends on consumer buying. No buyers, no recovery.
This is natural, normal and perhaps necessary to a market economy. And it will take years to sort out. Roofs have to fall in on thousands of enterprises, speculators and households. Then, the rebuilding can begin.
Posted by Paul King, Dubai, UAE on Thursday 25 June 2009 at 13:51 UAE time
Oversupply is producing deflation. Prices are falling as suppliers fight for demand by offering more for less.
This is what you'd expect at the end of a long period of credit expansion. Easy credit brought forth too much demand and too much supply. Now, the demand is disappearing...and the suppliers struggle to hold on.
Even now, we're facing an economy in which a high % of our economic output depends on consumer buying. No buyers, no recovery.
This is natural, normal and perhaps necessary to a market economy. And it will take years to sort out. Roofs have to fall in on thousands of enterprises, speculators and households. Then, the rebuilding can begin.
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