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Do you think the property market will ever recover?

Do you think the property market will ever recover?

The results are in.

August 2, 2009 1:20 by



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.



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7 Comments

  1. jameel on August 2, 2009 5:49 pm

    Property prices will only stablize only if the govrnment starts giving 5 years residence visas

     
  2. DG on August 3, 2009 8:43 am

    Correct – Singapore style no fuss 3 year resident visa are the order of the day for any individual and their families for a home purchased at a price of KD 1M or more. The government needs to move speedily on this.Álso the supply side must be frozen for all govt and quasi govt sponsored projects.
    Also make entry visas for visits for GCC country expats free of charge to encourage R&R tourism in UAE to repalce part of the western tourist traffic that is lost.

     
  3. marhabahome on August 4, 2009 7:15 am

    It will improve,once the global economy shows positive sign.

     
  4. Amin on August 4, 2009 9:00 am

    Singapore Style Residency Visas ? Well, I think UAE has had a different take on that… Esp since singapore started growing, Day 1, with knowledege workers for expats….and UAE needed, from Day 1, and will in future still need ‘Labour’ expats in millions….So the prudent thing, as I’m sure UAE leaders thoughts are, to take the ire of these professional expats in formative years and keep the long-term Residents composition/ratio healthy…Just look at what happened to Europe and others with lax residency and citizenship rules….Kudos to UAE for far-sighted and cautious approach….(Btw, I am an expat too!)

     
  5. paul gallagher on August 25, 2009 3:03 pm

    most investors have come to the realisation that dubai is rotten with corruption , that contracts are not worth the paper they are printed on and that the goverment will baschically change the law as they see fit so as to prevent money leaving the country

     
  6. Ms. Dabaus on August 26, 2009 7:19 am

    IF the market will continue to drop until 2010 , Why are we allowing the real estate agent to be s o artificail and leis on the prices to be so exteremely high….advertisement are posted without no clue of the market rental. e.q. 3 bedroom in JBR are still the price as 190K. Plus they given an option of one cheques to 2 cheuqes are reduced price. IS this part of the procedures in dubai. If you give one chequed then they will be panic to give a 5,000/- discount only. Wonder where are they getting there dats and facts in dubai.

     
  7. Syed on September 15, 2009 9:32 am

    Property price will only stabilize then taken some major points will be takes.

    Government will take Soft Corner in residence visa at least 3 years.
    Also make entry visas for visits for GCC country experts free of charge to encourage R&R tourism.
    Now day Canada, Australia & Some Other Country will allow to Immigrant to come to his country some year they will live then after entitle to Citizenship. I think at least Government will take some major action not only for real estate also economy will faster recover. They will make another soft law for free hold house to buy in UAE.

     

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