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Dubai home prices to drop 20 percent

Property prices in Dubai are expected to…

October 14, 2009 12:01 by



Property prices in Dubai are expected to fall by another 20 percent because of oversupply in the market, according to research released by property services firm Colliers International. The report said that 25 percent of the residential and office units were currently vacant. However, office capacity in Dubai was expected to double in the next year, it added. The report also said that home rents had fallen by 49 percent in the third quarter of 2009, as compared to the same period in 2008.

According to the Colliers, 71 percent of the 23 developers surveyed at this year’s Cityscape exhibition in Dubai said that they believed the property market had not yet bottomed out.



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4 Comments

  1. ali fakha on October 15, 2009 5:53 am

    I am totally diagree with what is mentioned above and really I don;t know opn what they depend and say that rents went down.

    I just renew my contracdt where the landlord increase 20% on last year and 25% for my neighbor and we have it in writing officially depending on what you can name it RERA as it allows the lanmdlords to increase till it reach the level they evaluate last year.

    For your information in less than 4 years my rent becasme double , so how rents went down, GOD KNOWS.

    On other side, I wonder how RERA evaluate houses when they give 3 bedrooms in back side of Al Riqqa street 120,000 DHs where no any additional benefits give by landlord other than parking and it is not proper one. RERA should give proper evaluation and check those buildings what facilities giving to tenants before dealing with all the same.

     
  2. Alec Harden on October 15, 2009 5:10 pm

    Just signed for a property in the greens for 60k which went for 110k at the peak. Anyone who accepted a rent increase in the current environment might as well lie down on the floor at the front entrance to MoE

     
  3. Sheen on October 15, 2009 6:45 pm

    Its kind of joke about Dubai Rentals. I stay in International City, here prices have gone down pretty much. I completely agree with the above article.

    Its the Agents who rule Dubai rentals. And I doubt whether Dubai Govt has any serious intentions to stop this nonsense. I dont understand how rents can double every year and go down like this.

     
  4. Papu Kangi on October 18, 2009 3:21 pm

    The property pricing in freehold is going down and the downward spiral will continue since the owners would rather rent them out then sit on them and lose money. The non-free hold properties are a different ball game altogether. Firstly, the areas like rigga, karama etc. and in high demand so the price drop is actually a trickle. Secondly, the owners are rich and proud people and would rather lose money ( and they can well afford to do so) than accept the fact that their property is actually worth less.

     

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