Dubai, Abu Dhabi best for long term property deals

by Alex Delmar-Morgan

Dubai and Abu Dhabi are best positioned within the MENA region to attract long term capital into their real estate markets, a new report claimed on Sunday.

Cairo and Casablanca, Morocco, were also tipped to perform the best out of 11 cities surveyed in the Middle East and North Africa (MENA) that were considered to offer the right combination of investment competitiveness, according to property adviser Jones Lang LaSalle’s (JLL) latest research.
Dubai’s property market, the report said, is over the worst of its troubles with evidence of stabilisation of prices, increased transactional volumes and demand.

However, it warned that over-supply was still hampering Dubai and was likely to worsen - putting pressure on rents and prices in the short term.

Earlier in the month investment bank UBS said house prices in Dubai would fall another 33 percent from current levels, on top of a 47 percent annual drop.

According to recent figures from Deutsche Bank Dubai will face an oversupply of 32,000 new homes next year.

Vacancies in the office sector in the emirate are around 25 percent and average occupancy rates in hotels are 65 percent, the report added.

In the past year Dubai has gone from being the best performer out of 46 markets monitored in the Knight Frank global house-price index to the worst.

The slump ended a construction boom that had created thousands of homes just as demand began to evaporate.



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