By Soren Billing
New research says Dubai's battered real estate prices saw upturn from July-Sept.
Dubai real estate prices rose 7 percent in the third quarter from the previous quarter on increased availability of mortgage financing and a perceived increase in job security among expat workers, Colliers said on Tuesday.
The volume of transactions grew by 64 percent in the same period, according to the real estate consultancy’s Dubai House Price Index.
“The Q3 results indicate a ‘bounce’ in the market but we will have to wait for the Q4 results before we can say whether an underlying growth profile exists, indicating a potential recovery,” said regional director Ian Albert.
Prices were 47 percent lower than in the same period a year ago.
Colliers predicted that the volume of new units expected to come onto the market in 2010 will dampen prices but that “tier one” developments will be less affected than others.
“Well planned mature developments in good locations, supported by facilities and community infrastructure will receive relatively higher demand. This demand ensures a lower risk profile for banks, which ensures the availability of finance to support demand further,” said Albert.
“The dynamic between consumer demand and the banks’ risk profile for lending will be fundamental to driving the price direction of each development in the coming months.”
On Monday, HC Securities & Investment said Dubai real estate prices bottomed out in April and had risen 9 percent since.
Consensus estimates for the amount of real estate that will enter the market in the next two years are overstated, and the peak-to-trough decline was smaller than many analysts were expecting, the brokerage said in a research note.
Once again the experts are not sharing the data collected which clearly they believe supports their claims of an uptick. We would all love to know the facts, how many units, where, what prices, who the buyers were, but none of the self-appointed pundits are able to provide a single fact.
It is amusing to see yet another "report" on the increase in real estate prices. Face the facts, finally the market is talking and not real estate "professionals". To support that, simply go to dubizzle and see what rents are and HOW MANY units are for sale and rent. My uninformed forecast is that prices are going to fall and fall and fall......despite Colliers (and others) fine propagande.
The people who take great joy and pleasure in only believing the worse are often the very same people who have lived in the UAE for many years and missed the boat and are still renting. Greedy and ignorant speculators got burned over the past 24 months (deservedly so) but those who bought in to the Dubai dream early enough are still happy. Prices up or down 30 % I dont care, I'm happy I bought a hope here.
It is high time people who are so called EXPERTS start talking facts and living to their name. The same very set of people seem to say the price is down by 30% and again you read they say it is up by 7%. It is not clear if they are all talking about property price or about are they turning it into a FISH MARKET. Please guys live up to your names
I am in full agreement with John. The volume rise might be 41 units sold compared to 25 last quarter thus giving a 64% rise in units sold. This of course is totally insignificant compared with what the market should be. The same argument applies to the 7% increase. That could be based on 1 unit sold in each quarter. Colliers et al, give us the real figures, we can all do the % calculations (if we actually need it)!!
Over the last 6 months there have been multiple opinions stated as to the current and future state of the Dubai Real Estate market. Regardsless of people's personal views, the fact remains that Dubai, along with the rest of the world has experienced the greatest recession since the 1920's. It is no surprise then that the Real Estate market in Dubai has suffered as a result. The key factor that Dubai has going for it is it's flexibility to take advantage of global opportunities when they arise. As with any down-turn, eventually markets will start to pick up once confidence returns, the Dubai Government should take advantage of this and enact policies designed to attract global commerce back to the Emirate. If they are successful all markets in Dubai , including the Real Estate sector, should grow. Dubai has an amazing future, and whether you are a promoter or a detractor, the long term view needs to be taken into account. As a foreign investor in the Dubai real estate market, I have a long term view, I didn't jump ship when times got hard, and I firmly believe that Dubai's long term future will be golden if managed correctly.
I donâ€™t know if these companies and expert know what disservice they are doing to Dubai. An investor in Dubai or in other countries reading all these contradictory statements is going to be scared away.