Do you think the property market will ever recover?
The results are in.
August 2, 2009 1:20 by Aarti Nagraj
After it was forced to write off AED1.73 billion from John Laing Homes, its US division, Dubai-based Emaar Properties has revealed a huge loss (AED1.3 billion) for the period between April and June this year.
The company described the first half of the year as “extremely challenging.”
Meanwhile, a recent report by credit-rating agency Moody’s claims that Dubai’s real estate sector will continue to see price drops until the second quarter of 2010. “The Dubai property market remains subdued following the fall-out from the credit crunch and the global recession,” it says.
Although around 11 percent of our respondents are optimistic about the city’s property market recovering in 2010, a large number of people – around 29 percent – don’t trust Dubai’s developers and are not expecting a recovery.
But 51 percent are positive that Dubai’s real estate market will probably see a revival at some point; however, they don’t believe that it will go back to its former glory.
“Although the decline of residential real estate prices has slowed, there is a near-term risk of further declines if expatriates leave Dubai after the end of the school year and the seasonal summer/Ramadan slowdown,” says the Moody’s report.
“Furthermore, third-party consultants believe that oversupply in the market is unlikely to be resolved within the next 12 months given dynamic supply-demand developments, which could result in prices remaining sluggish or falling further, albeit at more moderate levels than over the past nine months.”
For around 8 percent of our respondents, all this makes no difference. “I don’t know and I don’t care,” they say.