By Joanna Hartley
Move to a demand driven industry will hit lower quality units the hardest, says analysis.
Dubai property prices will fall by 35 percent for officesand 20 percent for apartmentsthis year, according to a market report released on Sunday. The latest analysis of the real estate sector, carried out by Landmark Advisory, claims that the move to a demand driven industry will hit lower quality units the hardest.
It also predicts that villa prices will remain largely unaffected by the property downturn, while prices for warehouse space may actually rise as it is currently an under supplied sector.
“As the overall price declines continue across most real estate assets in 2009, developers that deliver on the quality they promised will be rewarded, while lower quality units will bear the brunt of falling prices,” said Daniel Seleanu, research analyst.
“As the price discovery process unfolds, we expect sale prices to fall on average by 20 percent for apartments and 35 percent for offices. Villa prices, however, are likely to remain fairly stable.”
Stagnating income levels in Dubai, caused by a slowing economy, meant that increased liquidity and widely available lending would be the key to determining how long the region’s property market would take to recover, he added.
Landmark Advisory was established in September 2006 under the name of Landmark Consulting Associates to provide general advisory services in the areas of development and planning. It is part of Landmark Properties.
Landmark is just another in the long line of would-be pundits putting a round number on the decline in property prices in Dubai. Psst! Wanna buy a villa?
How does Landmark Advisory do their research? Estimation? Prediction? Wishful Thinking? Common' - this is not rocket science. The prices are down to this level (20-35%) already and sliding further. Landmark Advisory should be straight and honest or they disqualify themselves.
Jebel Ali Baba, You criticize Landmark's estimates and predictions, but then make your own in the same breath. "The prices are down to this level (20-35%) already and sliding further." On planet Earth, we call that "hypocrisy" You just disqualified yourself. :)
Although the report is good, it does not tell us anything we do not already know, or anything that was not anticipated given the current global economic conditions. Someone needs to come out and start capping the chaotic prices across the UAE, or at least produce a guide for pricing.