Recent reports suggest that Dubai’s property market may have bottomed out…finally.
November 4, 2009 12:52 by Aarti Nagraj
Prices for completed apartments in Dubai increased by 1 percent from the previous quarter, while villa prices increased by 3 percent, according to a report released by property consultancy Asteco last month. Meanwhile, apartment prices in areas like Downtown Burj Dubai have gone up 8 percent since July this year, it said.
Property consultancy Jones Lang LaSalle also claimed that the market is showing signs of stabilization. “The rate of decline is now falling and there has been a convergence between asking and achieved prices,” the company said in a report.
The third quarter results released by some developers have also been positive; results from one of Dubai’s biggest property developers, Emaar, beat analyst’s expectations, with the company’s revenues during the period increasing 12 percent compared to the third quarter of 2008. It made net profits of AED655 million during the period as compared to a loss of AED1.285 billion in the previous quarter.
Dubai-based developer Deyaar also saw third quarter net profits rising 8.2 percent over the previous quarter.
But despite the optimism, the market still has a long way to go.