Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Print
Email
Discuss this article (7 Comments)Dubai house prices fall 4% in past six months
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 05 November 2009
PRICE FALL: Deutsche Bank said on Thursday that Dubai house prices had fallen four percent in the past six months. (Getty Images)
Dubai property prices fell by just 4 percent in the last six months but future supply could prevent a near-term recovery, Deutsche Bank said on Wednesday.
Property prices and rents were flat on the month, indicating that the market is stabilizing, but prices are still down by 52 percent from their peak, the bank said.
“While signs of life are multiplying in the real estate market, we believe the main risk remains new supply, which could prevent any meaningful recovery in the near term,” analysts Nabil Ahmed and Athmane Benzerroug wrote in a research note.
Around 30,000 new housing units could hit the Dubai market by the end of next year, they added.
Prices eased by 0.9 percent on the month while rents gained 2.4 percent in October, according to the Deutsche Bank proprietary price index.
Deutsche estimated that transaction levels have risen by 50 to 60 percent from their lows in the first half of the year.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Useless Reports
Posted by The Don, Dubai, United Arab Emirates on Saturday 7 November 2009 at 09:21 UAE time
These all reports addressing the prices of real estate assets in Dubai are useless. The issue today is no knows what is going on... that is the simple fact because all of these reports are based on asking prices and not the actual transactions.
Definitely in certain areas, assets market values are better than other areas in comparison of values one year a go and better in terms of decline or increase %. But general trend for the market is not clear at all.
The question I will ask: If I invest in a real estate asset in Dubai what sort of economy activities that will create demand on this asset to make it financially viable for me? I guess risks are even higher today with the shift of economic activities within UAE from Dubai to Abu Dhabi. Then my best investment would be in Abu Dhabi itself or in the areas closer to Abu Dhabi in Dubai. The later would mean that I have to assess if the trend that we witnessed in hey days when Sharijah and Ajman acted as a feeder of real estate assets at a cheaper prices to Dubai will repeat itself in the feeder role Dubai will play to Abu Dhabi.
Tough call?! Isn't it...this means these reports are useless
Posted by The Don, Dubai, United Arab Emirates on Saturday 7 November 2009 at 09:21 UAE time
These all reports addressing the prices of real estate assets in Dubai are useless. The issue today is no knows what is going on... that is the simple fact because all of these reports are based on asking prices and not the actual transactions.
Definitely in certain areas, assets market values are better than other areas in comparison of values one year a go and better in terms of decline or increase %. But general trend for the market is not clear at all.
The question I will ask: If I invest in a real estate asset in Dubai what sort of economy activities that will create demand on this asset to make it financially viable for me? I guess risks are even higher today with the shift of economic activities within UAE from Dubai to Abu Dhabi. Then my best investment would be in Abu Dhabi itself or in the areas closer to Abu Dhabi in Dubai. The later would mean that I have to assess if the trend that we witnessed in hey days when Sharijah and Ajman acted as a feeder of real estate assets at a cheaper prices to Dubai will repeat itself in the feeder role Dubai will play to Abu Dhabi.
Tough call?! Isn't it...this means these reports are useless
Trend is Up - the exact % is not important & can vary depending on the data used .....
Posted by Optimist on Thursday 5 November 2009 at 19:04 UAE time
one thing that all the reports from various sources show a good upward trend or slowing decline depending on what data has been used. as the trend is much better than a few months ago that is a good sign.
Posted by Optimist on Thursday 5 November 2009 at 19:04 UAE time
one thing that all the reports from various sources show a good upward trend or slowing decline depending on what data has been used. as the trend is much better than a few months ago that is a good sign.
Mixed Signals
Posted by Rajesh, Dubai, UAE on Thursday 5 November 2009 at 14:50 UAE time
Aren’t all these reports confusing people who are serious about investing in a home in Dubai? I think there should be one agency who could publish a report that should be rated/evaluated by an independent body.
Posted by Rajesh, Dubai, UAE on Thursday 5 November 2009 at 14:50 UAE time
Aren’t all these reports confusing people who are serious about investing in a home in Dubai? I think there should be one agency who could publish a report that should be rated/evaluated by an independent body.
Same same but different
Posted by amir on Thursday 5 November 2009 at 12:51 UAE time
Dubai house prices fall 4% in past six months
on Thursday, 05 November 2009
Dubai house prices up 7% in Q3 - Colliers
Tuesday, 03 November 2009
Dubai house prices seen falling up to 30% in 2010
Thursday, 29 October 2009
Dubai real estate prices bottomed out in April and have risen 9 percent since, HC Securities & Investment said on Monday.
Property | UAE
Dubai home prices up for the first time since plunge
Prices, however, remain 47 per cent below their level a year ago
* Published: 12:20 November 3, 2009
Posted by amir on Thursday 5 November 2009 at 12:51 UAE time
Dubai house prices fall 4% in past six months
on Thursday, 05 November 2009
Dubai house prices up 7% in Q3 - Colliers
Tuesday, 03 November 2009
Dubai house prices seen falling up to 30% in 2010
Thursday, 29 October 2009
Dubai real estate prices bottomed out in April and have risen 9 percent since, HC Securities & Investment said on Monday.
Property | UAE
Dubai home prices up for the first time since plunge
Prices, however, remain 47 per cent below their level a year ago
* Published: 12:20 November 3, 2009
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST REAL ESTATE
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST REAL ESTATE
LATEST MIDDLE EAST BUSINESS NEWS
- Sport: Westwood leads Race to Dubai at end of second day
- Politics & Economics: UAE will not drop US dollar peg – cenbank chief
- Politics & Economics: Dubai may see growth of 5% in 2009 - Alabbar
- Politics & Economics: Dubai to act tough on employees’ salary defaulters - paper
- Construction & Industry: Dubai plans start-up help for expat entrepreneurs
SHARE PRICE CHECK
RELATED STORIES
Market Turmoil Focus
3 stories- EXCLUSIVE: Boeing chairman sees more job cuts in 2010
19 Nov '09 | News - More UAE bank mergers predicted in 2010 - Ethos
19 Nov '09 | News - Dubai property market 'may take 10 years to rebound'
18 Nov '09 | News
Deutsche Bank AG
| 70 stories- Deutsche Bank upbeat on Saudi prospects
4 Nov '09 | News - Qatar Airways agrees $700m deal to finance planes
29 Sep '09 | News
Mobile
