Dubai real estate market on cusp of recovery
Dubai’s real estate sector was hit hard in the wake of the global economic crisis. Home prices plummeted more than 60 percent as speculators fled the market and funding dried up.
Almost half of all projects in the emirate were cancelled or put on hold, as bank loans were called in and developers struggled to pay contractors.
US property broke Jones Lang LaSalle last week said the real estate prices in Dubai were close to bottom, aided by safe-haven investors fleeing political unrest in the wider Middle East.
Villa sales increased 59 percent by value even as volume fell by nearly a third, indicating that higher-priced properties are attracting the most buyers, the consultancy said.
Industry players said completed real estate projects with finished community facilities were most likely to reap the benefits of a pick-up in the market.
“What brings the interest back to the market is infrastructure... developed to the standard that the tenant demands,” said Martin Berlin, chief strategy officer at Dubai Properties Group. “Value has spilled into [these developments] and not new developments. The market has developed from a ‘build and they will come market’ to a ‘build what the customers demand’ market.”
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But two days ago, property agent CBRE reported bad news for developers, saying that office-leasing has more than halved and there are “few signs to suggest and more »
Although no date for completion is being given by the developers Tatweer, part of Dubai Properties Group, designs for the villas are being completed before and more »