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Dubai Realty: To improve or not to improve, that is the question?
Though analysts seemed divided on whether 2012 will be the year of recovery for Dubai realty, Kipp isn’t feeling the optimism.
January 3, 2012 3:51 by Eva Fernandes
‘Dubai realty in recovery mode with sales rising 20% in 2011’ was the particular headline that greeted us this morning as we leafed through the Gulf News. Apparently the Dubai Land Department has revealed that sales of land and property rose 20 per cent in 2011. In 2011, the Dubai Land Department has recorded over 35,297 transactions worth Dh143 billion last year: which is an impressive 20 per cent increase from 2010.
“The 2011 results demonstrate Dubai’s ability to fully recover from the challenges of the international crisis and prove once again the strength of its economy,” was the particular statement from the department.
And yet the over supply of units means some analysts are not quite as optimisitic. According to Jones Lang La Salle, this year more than 27,000 homes are scheduled for completion this year. Now it is likely that a good number of these units are likely to end up delayed but an oversupply of units in Dubailand and Dubai Marina will negatively affect rents and prices.
“Unless we see a real pick-up in demand driven by population growth and job creation, I can only see the downward trend [in prices] continuing,” Paul Maisfield, the general manager in Abu Dhabi for Asteco told The National.
So, though you perhaps may not be an analyst-which side of the camp do you fall on? Do you think 2012 will be the year of recovery for Dubai realty? Or is that purely wishful thinking?