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Recent reports suggest that Dubai’s property market may have bottomed out…finally.
November 4, 2009 12:52 by Aarti Nagraj
Dubai’s property market was one of the main victims of the global financial crisis in the region; real estate prices in the city have fallen 50 percent from their peak in 2008, and according to reports, $300 billion worth of construction has either been delayed or canceled. But according to recent market research reports, the market is finally showing signs of recovery.
According to property consultancy Colliers International, real estate prices in Dubai climbed 7 percent in the third quarter of 2009, from AED949 to AED1,016, the first rise since the market crashed in 2008. Market transactions during the period increased by 64 percent, it said.
“The third quarter results indicate a ‘bounce’ in the market but we will have to wait for the fourth quarter results before we can say whether an underlying growth profile exists, indicating a potential recovery,” Ian Albert, Colliers International regional director in Dubai said in the report.
A report by Cairo-based research body HC Securities & Investment, however, is more optimistic. It says that property prices in the city have increased by 9 percent since the market bottomed out in April. “Improving sentiment and risk appetite, a negative real interest environment and attractive rental yields,” have all contributed to the recovery, the report said, adding that mortgage values and volumes have also improved.