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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.

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January 25, 2010 3:55 by



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.



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1 Comment

  1. Peter M on January 26, 2010 7:53 am

    If it stabilises this year it will be with artificial inflationary forces because rental prices are still severaly overpriced in Dubai. until figures return to 2005 values, there shall be no stabilisation as 2005 was the perfect equilibrium point between what people could afford and what landlords were happy with.

     

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