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Discuss this article (7 Comments)Dubai house prices up 7% in Q3 - Colliers
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 03 November 2009
PRICE REBOUND: Colliers said on Tuesday that house prices in Dubai rose seven percent in Q3. (Getty Images)
Dubai real estate prices rose 7 percent in the third quarter from the previous quarter on increased availability of mortgage financing and a perceived increase in job security among expat workers, Colliers said on Tuesday.
The volume of transactions grew by 64 percent in the same period, according to the real estate consultancy’s Dubai House Price Index.
“The Q3 results indicate a ‘bounce’ in the market but we will have to wait for the Q4 results before we can say whether an underlying growth profile exists, indicating a potential recovery,” said regional director Ian Albert.
Prices were 47 percent lower than in the same period a year ago.
Colliers predicted that the volume of new units expected to come onto the market in 2010 will dampen prices but that “tier one” developments will be less affected than others.
“Well planned mature developments in good locations, supported by facilities and community infrastructure will receive relatively higher demand. This demand ensures a lower risk profile for banks, which ensures the availability of finance to support demand further,” said Albert.
“The dynamic between consumer demand and the banks’ risk profile for lending will be fundamental to driving the price direction of each development in the coming months.”
On Monday, HC Securities & Investment said Dubai real estate prices bottomed out in April and had risen 9 percent since.
Consensus estimates for the amount of real estate that will enter the market in the next two years are overstated, and the peak-to-trough decline was smaller than many analysts were expecting, the brokerage said in a research note.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Disservice to Dubai
Posted by Dan, Stockholm, Sweden on Wednesday 4 November 2009 at 03:55 UAE time
I don’t know if these companies and expert know what disservice they are doing to Dubai. An investor in Dubai or in other countries reading all these contradictory statements is going to be scared away.
Posted by Dan, Stockholm, Sweden on Wednesday 4 November 2009 at 03:55 UAE time
I don’t know if these companies and expert know what disservice they are doing to Dubai. An investor in Dubai or in other countries reading all these contradictory statements is going to be scared away.
Real Estate Sector Growth
Posted by Fyfe, London, United Kingdom on Tuesday 3 November 2009 at 17:44 UAE time
Over the last 6 months there have been multiple opinions stated as to the current and future state of the Dubai Real Estate market. Regardsless of people's personal views, the fact remains that Dubai, along with the rest of the world has experienced the greatest recession since the 1920's. It is no surprise then that the Real Estate market in Dubai has suffered as a result. The key factor that Dubai has going for it is it's flexibility to take advantage of global opportunities when they arise. As with any down-turn, eventually markets will start to pick up once confidence returns, the Dubai Government should take advantage of this and enact policies designed to attract global commerce back to the Emirate. If they are successful all markets in Dubai , including the Real Estate sector, should grow. Dubai has an amazing future, and whether you are a promoter or a detractor, the long term view needs to be taken into account. As a foreign investor in the Dubai real estate market, I have a long term view, I didn't jump ship when times got hard, and I firmly believe that Dubai's long term future will be golden if managed correctly.
Posted by Fyfe, London, United Kingdom on Tuesday 3 November 2009 at 17:44 UAE time
Over the last 6 months there have been multiple opinions stated as to the current and future state of the Dubai Real Estate market. Regardsless of people's personal views, the fact remains that Dubai, along with the rest of the world has experienced the greatest recession since the 1920's. It is no surprise then that the Real Estate market in Dubai has suffered as a result. The key factor that Dubai has going for it is it's flexibility to take advantage of global opportunities when they arise. As with any down-turn, eventually markets will start to pick up once confidence returns, the Dubai Government should take advantage of this and enact policies designed to attract global commerce back to the Emirate. If they are successful all markets in Dubai , including the Real Estate sector, should grow. Dubai has an amazing future, and whether you are a promoter or a detractor, the long term view needs to be taken into account. As a foreign investor in the Dubai real estate market, I have a long term view, I didn't jump ship when times got hard, and I firmly believe that Dubai's long term future will be golden if managed correctly.
Prices, Volume up?
Posted by Dries Snr, Dubai, UAE on Tuesday 3 November 2009 at 14:20 UAE time
I am in full agreement with John. The volume rise might be 41 units sold compared to 25 last quarter thus giving a 64% rise in units sold. This of course is totally insignificant compared with what the market should be. The same argument applies to the 7% increase. That could be based on 1 unit sold in each quarter. Colliers et al, give us the real figures, we can all do the % calculations (if we actually need it)!!
Posted by Dries Snr, Dubai, UAE on Tuesday 3 November 2009 at 14:20 UAE time
I am in full agreement with John. The volume rise might be 41 units sold compared to 25 last quarter thus giving a 64% rise in units sold. This of course is totally insignificant compared with what the market should be. The same argument applies to the 7% increase. That could be based on 1 unit sold in each quarter. Colliers et al, give us the real figures, we can all do the % calculations (if we actually need it)!!
prices up & Down
Posted by shivaraman Ravi, Doha, Qatar on Tuesday 3 November 2009 at 14:08 UAE time
It is high time people who are so called EXPERTS start talking facts and living to their name. The same very set of people seem to say the price is down by 30% and again you read they say it is up by 7%.
It is not clear if they are all talking about property price or about are they turning it into a FISH MARKET. Please guys live up to your names
Posted by shivaraman Ravi, Doha, Qatar on Tuesday 3 November 2009 at 14:08 UAE time
It is high time people who are so called EXPERTS start talking facts and living to their name. The same very set of people seem to say the price is down by 30% and again you read they say it is up by 7%.
It is not clear if they are all talking about property price or about are they turning it into a FISH MARKET. Please guys live up to your names
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