AB Property Survey 2009 results revealed

Large declines in house prices and rents are expected by home owners and tenants in the Gulf region during 2009.
Palm Jumeirah, Dubai
By Andy Sambidge
Wed 29 Apr 2009 03:54 PM

Large declines in house prices and rents are expected by home owners and tenants in the Gulf region during 2009, according to the results of the Arabian Business Property Survey.

More than 1,000 people took part in our online poll that sought to get the views of end users living in the region.

Would their opinions match those of the many analysts who have predicted up to 70 percent falls in prices from their peak in the summer of 2008.

Well, we can tell you that 60 percent of respondents told us they expected a decline in home prices of between 30-50 percent.

Of those, 26 percent saw a fall of 50 percent, 15 percent predicted a drop of 40 percent and another 19 percent expected a fall of at least 30 percent.

By contrast, only seven percent of people who took part in our Property Survey said they expected any kind of rise during 2009.

Meanwhile, more than one in 10 respondents said they pay more than 50 percent of their monthly income on their mortgage or rent.

Twelve percent of people who took part in our poll told us they forked out between 51 and 70 percent of their earnings each month to pay for their home.

And the survey also found that 63 percent of respondents expected rents to drop by between 20 and 60 percent in 2009.

Of those, nearly 15 percent expected declines of a whopping 50 percent as the slowdown in the real estate market continues.

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