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Thu 5 Nov 2009 10:37 AM

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Dubai house prices fall 4% in past six months

Deutsche Bank report says rate of price decline slowing, concerns over supply.

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.

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Casper 10 years ago

Different companies saying different things. They are all wishing well for themselves. Sign of the times unfortunately.

John 10 years ago

Having dealt with this bank for years I know that they take research very seriously indeed, and don't pull their punches when it comes time to spill the bad news. I would believe this crowd long before any of the property tarts, who are all talking up a non-existent market. The low exposure DB has to mortgages in the Gulf allows them to speak freely about the realities of the market. I am pleased to see people saying "signs of life" rather than "green shoots"!

Ziad 10 years ago

Who should we believe Colliers or Deutshe Bank or RERA I think there is a lack in Transparency The market is suffering very much and no signs of Recovery till today Stop lying on people

amir 10 years ago

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

Rajesh 10 years ago

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.

Optimist 10 years ago

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.

The Don 10 years ago

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