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Sun 19 Jul 2009 01:46 PM

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Property in New Dubai starting to recover - report

Downtown Burj Dubai, Dubai Marina, and Emirates Living are beginning to stabilise, experts say.

Downtown Burj Dubai, Dubai Marina, and Emirates Living are starting to see a recovery in property prices, it has been reported.

Real estate prices in New Dubai are starting to stabilise with more people choosing to live there and commute to Abu Dhabi, property experts told Gulf News,

"Those working in Abu Dhabi are increasingly exploring residential units in New Dubai due to its proximity to the UAE capital,” Andrew Chambers, managing director of Asteco told the paper.

"While tenants are seeking units in community developments, the demand has mostly been for one and two-bedroom apartments and for three and four-bedroom townhouses,” he said.

Industry reports suggest rent and house prices in Dubai have eased significantly over the previous quarter, the paper reported.

Since the global financial crash property prices in Dubai have tumbled by about 34 percent, according to the Landmark Advisory, with some expert believing there will be a further 20-30% drop to come.

During the second quarter, the price of aapartment saw a slight drop from around AED1,000 per square foot to AED900 per square foot, the paper reported.

Villa prices declined during the same time from AED1,130 per square foot to AED980 per square foot.

However, rental prices look set to remain competitive for sometime, expert said.

"The current oversupply situation coupled with weak demand on both a local and international front will mean landlords will be fighting extra hard to secure tenancies, adding further downward pressure to rent," said Matthew Green, head of research and consultancy in UAE, CB Richard Ellis.

Arabian Business: why we're going behind a paywall

Ramesh 11 years ago

Ups and downs are part and parcel of life and economies all over the world...I am not shocked to see it go down...because I have seen this in year 2000 also......influx of expats living in ajman sharjah and abudhabi to dubai as rents went down...with all around tolet boards in dubai......its a cycle and very soon uae and the whole of gulf and dubai will again bounce back......soon... dont worry be happy......always....

gamby 11 years ago

who said?? base on what?? the real estate experts?? anal yst?? don't believe those guys..they call themselves experts! if you are experts then why did this happened.

Nick J 11 years ago

Ramesh, wake up, Dubai is bouncing back (or should I say crashing back) very nicely. Businesses can not sustain the ridiculously high level they have reached. We have just relocated our company to Bahrain, the savings are enormous. Maybe when prices in Dubai reach 2004/2005 levels, Dubai might become competitive again.

Bharatkumar 11 years ago

Please don't read too much into this report as I have a villa in Green community west and the prices there are not even 600 Dhs a sq ft ! Thats a discount of 40% over the above quoted price. where are the buyers ? I want to sell !

The Don 11 years ago

Here you go another report on recovery quoting an expert who has vested interest in giving some window dressing for the ugly situation. What a mess they created then and what a mess they are trying to protect. Dubai needs to go back to 2004/2005 levels (as Nick posted) to be competitive and more importantly people stop trading in these assets and focus on doing real business and good living in these assets... you can't keep selling and reselling buildings forever without any economical purpose to drive the demand for these assets.

Punky Brewster 11 years ago

Who decides to put this on the net, saying recovery is in sight? I am in the market to BUY something, but the high fluctuation in prices for apartments is ridiculous. Besides, would I want to buy a 2 Million Dirham home, and see it drop 10 % the week after? I don' t think so. Stability will ONLY come once the GOVT changes/relaxes the LAWS, helping out BOTH the parties. At present, only the developer is at an advantage. I think the experts are prob doing their Jobs, saying what the Bosses want to hear!! Reality Checks Needed, BADLY!!

Mike 11 years ago

Come on all you "experts" stop making bald statements and demonstrate some facts. It was exactly this don't worry property prices are always increasing in value that brought the worlds economiies to their knees

Vincent 11 years ago

Ha Ha Ha Ha Ha Ha. Nice sense of Humor.

EA 11 years ago

call me crazy, but i'm getting a distinct feeling that arabian business is spreading rumours about a recovery on purpose... every other day there's an article about dubai RE recovery in collaboration with asteco. useless propaganda. dubai RE is still on its way to the bottom of the sewers and all your pitiful articles and their so called surveys about how the recovery has begun are just there for make belief keep writing them though... it puts a smile on my face in the morning to see how hard everyone's trying to bring back confidence in the lie that is dubai's RE boom

paul 11 years ago

Are these 'experts' the same ones who even this time last year were confidently predicting Dubai was special, Dubai was immune to the global crisis, Dubai could not possibly crash? AB is clearly being leant on from above to provide 'good news' stories, hence the focus on the unsubstantiated positive spin from a real estate company and not on the last paragraph from a research company, which is overtly negative. The crash is ongoing, but expect the real estate industry to predict the bottom every single month for the next 2-3 years. Fewer people and more property is not a recipe for a recovery or stabilization in rents. To suggest otherwise is only highlighting the real estate industry's dishonesty, or possibly just complete cluelessness. Things have a long way to fall yet, and rents may well approach a level of little more than service charges with the amount of empty property that Dubai will have by this time next year.