By Martin Morris
Property consultant notes steady shift of prices to more reasonable levels.
Sherwoods Independent Property Consultants says it has seen a steady shift in property prices in Dubai towards more reasonable levels as the real estate market enters a new phase that will serve as a springboard to recovery.It expects to see concrete signs of growth in both property prices and real estate investments from Q4 2009, prior to 2010, which it sees as 'a year of stabilization'.
Sherwoods MD, Iseeb Rehman, says the correction of prices to 'reasonable levels', has created better value opportunities for both buyers and investors.
Sherwoods notes that at the height of the economic downturn witnessed during H1 this year Dubai's property sector was able to remain relatively buoyant, due to the significant reduction in the number of speculators operating in the market.
It also points out that the recession has given Dubai an opportunity to consolidate its real estate regulations and legal framework.
The company describes as "extremely positive" the initiatives undertaken by RERA (Real Estate Regulatory Agency) to protect Dubai's property market, although it noted there is still a lot of work to be done.
"I think the effort put in by RERA has been extremely positive, but the challenge is to continue to carve out and enhance the regulatory framework and to ensure adherence of the same from all segments of the industry.
''Also, I think they now have to focus on sending positive signals into the market and make sure that the interests of every segment of the real estate industry is taken care of," Rehman said.
Right on solid and far out...let the good times roll. Hang on to what you have got.Dont let the "wish i had',"should have done" negative cockroaches inluence the your final game plan.
Can Arabian Business stop publishing these nonsense by unqualified agents. Sherwoods has a lot of inventory to clear off so ofcourse they would report such in their interest. The reality is, the prices must fall and come to an affordable and worth value. A lot of times, people have to say in Dubai ofcourse you have to pay premium. Let me ask... premium for what? To live in dust, sand and heat? This is like an agent I had called informed me "In tecom, you have to pay high price." I am sure he hasnt been to tecom only then he would realise that there arent proper roads, drainage, sewage and its completely dusty and pathetic. And pay 80K for 1 bedroom rent? He was sure out of his mind. I am not bashing... but can we have some sense in the words we use. Its a great city... no doubt. But expensive for no reason. The real estate had killed a lot of market and business here by simply making leasing and buying expensive which then reflected in the price of goods. Which makes sense why recently everything is expensive here and why tourists spend less these days. Ask most of them would say Dubai seems expensive compared to home. Prices must fall and greediness must end. If anyone paid high price, accept the loss. Just because some fools had paid nonsense price, doesnt mean it has to rise up for them to sell. There aren't much fools left in Dubai. They have all been swiped in redundancies.
Do these guys all need therapy, or is it just this one. Try to deal with reality, stop living in Neverland and remember, Harry Potter is a storybook character who never bought on The Palm.
"during H1 this year Dubai's property sector was able to remain relatively buoyant, due to the significant reduction in the number of speculators operating in the market." Relatively buoyant? 50%+ crash in prices and a total slump in activity is 'relatively buoyant'? You can argue about the future direction, but if the people trying to convince us it will rise are busy peddling demonstrably false commentary of the past 6 months (i.e. 'relatively buoyant') then you have to take their predictions in context. The context being that they are either unashamed liars or completely bonkers. Or both.
Either we like it or not plenty of real estate agents are making millions to date. They are around. Can not you see them? Can not you see their ads, offices, cars, etc...?? MM, Yes, it's dust, +50, and .... but nobody actually leaves Dubai including yourself?!Did you ask yourself why??! you should ask yourself before anyone else. You are the best to answer this question. We should be honest with ourselves first before we give any opinion.
Ah Omar, Omar, Omar, I personally know at least 20 agents that have made didly squat (zilch, zero, nada AED0000000) in the last 5 months, are you talking about the same Dubai we live in?? Where do you find these people that no one else seeor know about?? - I personally know 7 of them that are defaulting on car loans, bank loans, mortgages etc... Omar - Real Estate in Dubai is defunct, and it will take a few good years before it shows any heart beat...
So good to see Omar is still around. I would have thought he had gone to Neverland by now to hold a vigil for that other great financial and social commentator, the one who liked monkeys, can't remember the name.
Great stuff Omar. Any vacant villas over there in the twighlight zone? (somehow I suspect they will all be full, with a waiting list of successful real estate agents queuing up to move in)
I'm sure Sherwoods would say the Titanic is relatively buoyant if they were sitting on stacks of tickets for atlantic crossings! If, and only if the market is stablising, it's more likely because there are zero buyers. A big fat 0! Talk to any employee of the major real estate agents and they will tell you there are no buyers. No one! This positive collapse will continue for sure, so sit tight and wait for the next phase of reductions.
Speaking of the Titanic,, this article and Omar reminded me of the ship when it first started sinking. There where people in life vests, but still hanging around in the ball room, fully suited, having drinks, socializing... Basically in denial and oblivious to whats going on around them. Goodluck, and take your time on board.