Recent reports suggest that Dubai’s property market may have bottomed out…finally.
November 4, 2009 12:52 by Aarti Nagraj
Deyaar’s third quarter net profit of AED81.6 million was a 74 percent drop compared to the same period last year. The company was also forced to lay off 20 percent of its workforce last month, following an internal review.
“This rationalization of resources has been carried out to support Deyaar’s sustained growth and maintain its commitments to customers, partners and shareholders in the most efficient possible manner,” Deyaar said in a statement posted on the Dubai Financial Market (DFM) website.
Dubai’s main property exhibition, Cityscape, which took place in October, saw visitor numbers falling by around 50 percent this year compared to last year, according to organizers. And according to a poll conducted by Reuters during the event, residential property prices in Dubai are likely to fall another 10 percent in 2009.
Around 71 percent of the 23 developers surveyed by Colliers International during the exhibition also said that they believed the property market had not yet bottomed out.
Market experts have also expressed concern over the huge influx of new units coming up in Dubai in the next few years. A Colliers report released last month said that property prices in Dubai are expected to fall by another 20 percent due to oversupply in the market. The report said that 25 percent of the residential and office units were currently vacant.