By Elsa Baxter
Online survey found just 5% think the real estate market has already hit the bottom.
More than 60 percent of people think UAE property prices are going to drop by another 20-30 percent this year, according to an online poll.
Arabian Business asked its readers whether they thought the real estate market had hit the bottom, with just 5 percent in agreement.
Instead, some 63.4 percent of people thought there was still another 20-30 percent correction to come.
House prices in Dubai have tumbled 50 percent from their peak during the fourth quarter of last year.
Problems of over-supply and population shrinkage, with thousands of jobless expatriates expected to return home now schools have broken up, will mean continued pressure on prices.
The poll results provide a rather more pessimistic view of the UAE real estate market than a recent Shuaa Capital survey into investor confidence.
The Dubai-based investment bank found that 19 percent of investors believed that the market had bottomed out.
The investor confidence survey, conducted between June 13 and 16, is the only one of its kind in the region. It also found the highest increase in investor confidence, rising 16.8 points to 123.8 points on the month.
However, the Arabian Business poll found that only 6.1 percent of people were optimistic, believing that the market was now on the road to recovery.
While, 25.6 percent played it safe, saying nothing was going to change until the end of the year.
Since when has anyone started listening to what Shuaa Cap has to say on anything................. Just look at their own recent troubles both financially and in the boardroom.......... They would be the last people I would be turning to right now - another bunch of gurus that are out of touch with the real activity on the ground.
I dont know about anybody else, but why is it that I have never been asked by any of these surveys to participate, is it done over coffee at local mcBrain stormers?? Anyway, yes property prices will go further down and I dont see any sunrise till 1Q 2010..
.....were they property agents or just wishful thinkers :)
And that 5% who think the property market has hit bottom,.. are most likely sellers.
No point talking when you are talking about the minority real estate, dont talk only about the free hold which gives a wrong picture of the current situation where majority of the middle clss cant afford to get a decent housing in dubai & due to the only reason they shift to other emirates for a house.. Why cant Dubai build affordable housing to the majority ? International promotion will only be fine when the national matters like housing & bread + butter are taken house properly for the majority of the population in UAE esp Dubai.
I think we will for sure see 20-30% from today's prices. As unemployment in Dubai climbs, stocks drop, oil prices retreat and no-residency is offered for buyers we will see the market continue to drop. There are many issues that the government needs to address in which they have not yet addressed so real estate prices will continue to tank.
Defenitely it should fall further the housing rent in Dubai
The only group of people who thinks that the property prices will go up is some ultra positive thinkers from the real estate market. But the whale majority of the investors think that it will roll back to 2002-2003 level and they won't invest anymore at least for sometime.
60% of who? will houses go up or down? Why not focus on meaningful topics such as the cost of food, clothing & mortgage rates/rents? If regular people could afford to free up some of their well earned cash this may have the added bonus of impacting the housing market and the economy.
I am end user and searching for market to fall further before I invest in. I personally have seen summer is showing the same signs of prices falling i hope the trend of correction continues and the end users will eventually buy the property.