Dubai house rents to stabilize this year
The report from Jones Lang LaSalle says that the lack of housing finance remains a major challenge for Dubai’s property market.
January 25, 2010 3:55 by kippreport
Dubai’s residential sector will see average prices and rents decrease slightly before stabilizing this year, according to a report released by property investment firm Jones Lang LaSalle. The market’s performance will vary based on different locations, and will be more driven by local demand and supply issues, the firm said.
“Prices seem to have stabilized over recent months, despite the existing over-supply situation,” said Blair Hagkull, the managing director of Jones Lang LaSalle Mena. “Stabilization of transactional volumes is another positive indicator of investor confidence but the lack of housing finance remains a major challenge in Dubai,” he said.
“An improved lending scenario is one of the key factors for a sustainable recovery as the value of mortgages as a percentage of total sales value has dropped significantly during 2009,” he added.