We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Tue 30 Jun 2009 05:12 PM

Font Size

- Aa +

Investors fear UAE property market has yet to hit bottom

New investor confidence survey reveals only 19% believe recovery is beginning.

Only 19 percent of investors believe the UAE real estate market has bottomed out despite a jump in investor sentiment, according to Shuaa Capital’s June GCC investor confidence survey.

“Of special interest this month was the question of whether investors were calling a bottom for the real estate sector,” said Oliver Schutzmann, Shuaa’s chief communications officer and author of the report.

A majority of investors in GCC countries have yet to do that, with the exception of Saudi Arabia, where 37.1 percent of respondents have called the bottom, 28.1 percent are undecided and 19.1 percent are still negative on the real estate sector.

The remaining respondents did not have an opinion on Saudi real estate.

In the UAE, 34.8 percent were negative, 27.0 percent were undecided and only 19.1 percent said they thought real estate prices had hit bottom.

Qatar was the only other market where real estate has “almost” seen the worst, Schutzmann said, with 27.0 percent of investors having called the bottom, while 30.3 percent were undecided and 28.1 percent were negative.

Shuaa’s Gulf-wide investor confidence index, which is the only one of its kind in the region, jumped 14.1 points to 133.5 in June, boosted by the UAE, where sentiment swung to positive from negative.

A number greater than 100 represents positive sentiment.

The UAE index witnessed the highest increase in investor confidence, rising 16.8 points to 123.8 points on the month, while Qatar posted the highest score at 141.6 points, followed by Saudi Arabia, which was unchanged at 139.9 points.

The Oman measure rose by 13.1 points and now stands at 117.7 points.

Both Bahrain, up to 109.8 points from 96.8, and Kuwait, up to 103.1 points from 87.3, are now in positive territory.

The survey was conducted between June 13 and 16.

Ninety institutional investors responded to questions about current and future economic conditions, stock markets, sectors, currencies and commodities.

Arabian Business: why we're going behind a paywall

Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.
Ashok Panicker 11 years ago

The headline should have appropriately read 'Investors fear UAE property market has yet to hit ROCK BOTTOM'. In fact, will there ever be a property market in the UAE??????

ametis 11 years ago

Yes there will be again property market in Dubai, infact the property market still exists today, thankfully without the Leeches that was sucking the industry... Now to get a real perspective..... Dubai is one of the best places to Live in in the world...so why not..

Punky Brewster 11 years ago

I loved that song... same way I'm actually getting used to reading abt property prices in DXB. I am SURE AB has done some good research, and someone's honest enough to admit that the BOTTOM is yet to come. I'm in the market to buy a property, but when I check the prices on a daily basis, 45% seem to be dropping, 10% seem to be reducing, 40% seem to be INCREASING the asking price, and only 5% are willing to NEGOTIATE...!! Wow.... thanks... Now I'm even more convinced to buy property in DXB... NOT!!!!

Angelo 11 years ago

Quote "The headline should have appropriately read 'Investors fear UAE property market has yet to hit ROCK BOTTOM'. In fact, will there ever be a property market in the UAE??????" when the Residency business is sorted for once and for all and not changing every couple of months some may be inclined to buy property - but not in multi story "battery hen" accommodation blocks

Louie Tedesco 11 years ago

We need the wise guiding words of Mr. Omar, to remind us again that all shopping malls are full, there's not even a parking space at your local realtor because business is booming and one can’t even get an appointment because the phone lines are constantly busy. Schools are out but traffic remains chock-a-block full with more airport arrivals and residence visa's than ever now being issued. Ah yes, things here have never looked better...

Anyone 11 years ago

Good Tectic guys! see the headline of news and then the description one is going to North another to south. But reality will remain same that worst is yet to come. Only one recession shock has been seen second is very near and than third. in this scenario money will matter not tactical words used by media.

Jonathan Miller 11 years ago

To Ametis, your either are completely gormless or living in a cardboard box. There is no confidence in the property market here. Aside from local regional interest who have been, and always will be, present long term in this region, there is zero interest from more widespread people in a market that has very little governance, regulation and protection. Many people have been burned very badly, be they investors or end users. This is not a sympathetic view but many people already regard this market as a no go area now. Regulation is 'promised' but its happpening too little too late. Typical knee jerk reaction. The market has not bottomed out - more simply that sellers are not dropping below a limit. They will either stay at this limit in which case, there will be no sales or they will have to let the market decide prices. If they faced facts, they will be in for a shock. If you think Dubai is one of the best places to live, you must be very easily satisfied. What else is here other than too many 5 star hotels and too many fancy restaurants?

paul 11 years ago

Omar, they are saying bad things about the property market again. Time to put the red cape on and fly to the rescue with some implausible and unintentionally amusing anecdotes.

Madjedi 11 years ago

I am one of these investors and I say there will not be any recovery until some fundemental problems are fixed: Off plan market has been killed by the developers, with RERA blessing, with delay in delivery, payment not linked to construction progress, no delivery guarantee and sky high service fees for completed units. The question is why the new property law has not been enacted. In addition, there are no approved land use and your property with sea view can today very well be surrended by 50 70-storeys towers around you, with zero public area and zero public services. The promised park in front of JBR has for the time being become a carpark and will, in a distant future, become a new development with 100 new towers. Parviz

raja 11 years ago

Omar, Pls come save us, there are so many negative reports and followed by very negative comments. Save us from these people with your cut & paste......