By Andy Sambidge
Jones Lang Lasalle report also says apartment rents down 4% compared to Q1.
The value of residential property transactions in Dubai rose 50 percent during the second quarter of 2010, compared to the previous quarter, Jones Lang Lasalle has said.
While the number of residential transactions also increased by 49 percent, this was still a 35 percent slump compared to the year earlier, the company said in a new report.
The total value also saw a fall by seven percent compared to the second quarter of 2009, the report added.
Jones Lang Lasalle also said apartment rents were down by four percent in Q2 compared to the previous quarter and 10 percent lower than Q2 2009 with the biggest decreases in the high-end sector.
Villa rents saw bigger falls, down 23 percent year-on-year and 11 percent in the past three months.
JLL said that although asking prices have marginally declined since the first quarter, achieved prices increased by one percent to around AED867 per sq ft.
The report added that apartment prices had remained stabled whereas villa prices were up marginally over the last quarter.
However with the total residential stock in Dubai expected to hit 320,000 by the end of 2011, Jones Lang Lasalle said prices were not expected to recover fully before 2011 at the earliest.
"Unlike the office sector, no major delays or cancellations are forseen in the residential market over the remainder of 2010," the report said, adding that about 14,000 units have been completed so far this year.
"Finance is a key factor in market recovery. The residential market has shown signs of improved lending in 2010 as more banks are injecting liquidity into the mortgage market," the JLL report added.
So there were 3 deals in Q2 as opposed to 2 in Q1. And is there any specific reason why no volumes are mentioned??
No need for more figures. 3 deals in Q2 and 2 in Q1. This is just a JLL PR article. Arabian business normally has better quality and documented articles. This is not like you. Hope someone will revise this article to contain some meat. Thanks
Improved lending or th emortgage availability is not the key issue right now. Need to dig deeper and realise that until we are able to arrest the exodus and increase the population levels, the property sector will be undder serious pressure due to increasing supply. Stimulous measures for small and medium are required to create motivation and hope.
this is simply PR article but AB this is not going to impress people
Then you get a bunch of nationalities buying here simply so they can get visas from local embassies to elsewhere (which can be a nightmare in their own countries). Also stimulus for new businesses. Right now there seem to be more barriers to entry than ever before. Considering the 'rest of the world' has to pay back the rescue packages for the next 5-10 years now would be an excellent time for UAE to attract new businesses and investors.
It's a good news for Dubai real estate business and it would help real estate investors to help retain confidence in investment in Dubai real estate.