Research giant Oxford Business Group (OBG) is claiming that Dubai’s property market has turned a corner, with the residential sector having “posted solid growth over the past few months."
In an article to be published in Arabian Business, OBG regional editor Oliver Cornock added that “other areas of the sector are also showing signs that recent declines are beginning to reverse.”
Property prices in Dubai soared after the city opened its real estate sector to foreign investors in 2002, granting them freehold ownership rights at many developments. From start-2007 to mid-2008, prices rallied almost 80 percent, Morgan Stanley estimates showed, with billions of dollars worth of new projects launched by local developers. But home prices in Dubai suffered the biggest reversal seen in the Gulf property market as result of the financial crisis, declining on average 60 percent.
Nevertheless, Cornock said he is now confident the corner has been turned, adding: “While the rate of growth given by different agencies may vary to some degree, all point toward a slow but steady recovery in Dubai’s residential property market.”
According to Cornock, investor confidence is also being driven by a new law proposed by the government and put forward by the Dubai Land Department (DLD). “Under the draft Investor Protection Law (IPL), which could be enacted this month, the rights of owners will be reinforced, including their ability to cancel their contracts if the developer does not provide all the facilities and services listed under the buyer’s agreement, or if property is not handed over within the designated eight-month period,” he said.