Summer property crash has not materialised - expert

TOP SPOT: Dubai Marina is proving to be the most popular real estate area in the UAE for July.

The big summer property crash that tenants and buyers were hoping for to further push prices down for has not materialised, a UAE real estate expert has said.

Marcello Sambartolo, head of marketing at propertyfinder.ae, said house prices for July appeared “flat” and that the real estate market was grinding to a standstill.

“Prices once again have taken a dip but not any lower than what may have been reasonably expected,” he said.  

“The big summer crash tenants and buyers were hoping for did not materialise. As everyone walks on egg shells, the market appears to be coming to a standstill rather than performing any huge fluctuation.”

His comments come at the same time as the website released details of the UAE’s most sought after locations to buy and rent.

The survey, based on the views of more than 120,000 visitors to the website over the past month, showed that Dubai Marina had the highest number of inquiries, making it the most popular place to rent and buy.

“We are also seeing that our visitors are steadily seeking in specific areas for longer periods,” Sambartolo said.

“Previously, seekers were looking for lower prices but since all areas are affected almost equally, the searches are not as erratic anymore. If someone wants to live in a particular area, they are more likely to wait rather than settle for another location for a 5 percent difference in price.

“The dreaded waiting game begins.”

Sambartolo said that in addition to searches for the most popular locations, a majority of people were searching for rents between AED50,000 to AED80,000, and that buyers’ top price was AED1.5m.

The second most popular area for searches to both rent and buy was JLT, followed by Palm Jumeirah. The fourth most popular place to rent was Discovery Gardens, while to buy it was JBR, the website said.

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READERS' COMMENTS

Omar the defender!
Posted by Meredith, Dubai, UAE on Wednesday 5 August 2009 at 12:42 UAE time


Omar,

Been reading your posts, baseless points with emotions rather than facts are not convincing. Your arguments are both intellectually dishonest and flawed. Pulling random pops from Google and basing your judgment on anything you read shows how credible your opinion is (which can easily be built upon fallacy). You claim to be an investor, ever read at the back of a mutual fund prospectus “Past performance is no indicator of future returns?” Google it to find out what it means.

Its pretty well known that real estate markets have crashed here, rents are coming down, this morning I read that majority of the listed companies are taking a hair cut. You on the other hand, come up with a baseless argument from who knows where. And stop it with this “if you don’t like it leave”. Ever thought of ‘hey these guys are able to find or pin point a problem” lets work on a solution rather than keep it hush hush and delay the inevitable. I suggest you google up the “frog and hot water” story as well, reminds me of you. Few months back you were suggesting everyone pick up a villa since prices were low. Curious as to how much have you drained yet? In fact I think you are a lonely broke chap/gal with probably nothing to invest yet continue to beat your chest. Prozac is good you know.

Mary Brown, those who live in glass houses should not be throwing stones. How well do you speak “englisn”. One should learn/speak a language if they are inspired by it. No need to learn anything you are not passionate about.

M.

Omar - Go And See An Optician
Posted by Jonathan, UK on Wednesday 5 August 2009 at 10:27 UAE time


Omar . . . you really are not seeing clearly and are suffering from tunnel vision. This is not about a collection of doubters or people who have unjustifiable ill feeling towards the UAE. Its about real people able to see the situation as it really is. You cannot compare previous 'rebounds' of Dubai to whats going on now. The situation now is dire beyond belief and the worst thing is that global confidence in Dubai is at an all time low and thats putting it mildly. There were no laws for protection, no proper due diligence, no measures to recover confidence, no process for recourse and no system of fair play. I'm sure the list can go on but these are facts, not stories made from thin air. I would love to hear from you why Dubai will come back stronger - whats the master plan? - Come on Omar . . . . lets have an audience with you.

Confidence
Posted by Etisalgood, Dubai, UAE on Wednesday 5 August 2009 at 10:21 UAE time


Unlike other countries that are taking steps to stimulate demand and revive their economies, the UAE is taking backward steps that chip away at consumer confidence, which is why any upturn in the real estate market will be difficult. Take recent developments for example:

- Government-linked developers reneging on promises to provide resident visas for property buyers.
- The new visa for property buyers that requires them to leave and re-enter every 6 months.
- Raising the minimum salary requirement to Dhs 10,000 a month to sponsor your family. Less families = less demand for housing.
- Discouraging employees seeking legal recourse by threatening them with one year bans. Again, a move that will only make expats uneasy about their future in the UAE.
- A continued lack of transparency with regards to economic indicators.
- No improvements to a regulatory framework that is virtually always rigged in favor of the select few.
- Enforcement of confounding laws such as arresting 13 year old kids for wearing silver necklaces and shorts.
- A surge in the characteristically indignant "take it or leave it" attitude across departments, agencies, banks, etc, with little or no regard to customer service or even human decency.

As an expat who was born in the UAE and has lived here for more than 2 decades, I remember a time when every single interaction between the authorities and expats didn't feel like it was over a knife's edge. I'm waiting to hear the inevitable "if you don't like it leave", but like it or not, this is the only "home" I've known and it ain't my fault I was born here.

Baakies
Posted by mary Brown on Wednesday 5 August 2009 at 09:59 UAE time


To Baakies;

How well do YOU spell and punctuate Arabic???
Or, do you even speak a SECOND language??
I congratulate Omar on his level of Englisn, considering, it is hhis THIRD lanuage..

WELL DONE OMAR:)

MARY

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