Monday, August 24, 2009

Better stability, lesser distress sales, in Dubai realty market

According to analysts, property prices in Dubai have grown up slightly and the market, in general, has stabilized, showing lesser distress sales.

Few of the sellers who were waiting in the hope of a price recovery, offloaded their assets at a loss during the first half of the year. This trend is not out as yet, but properties in the country are continuing to be sold without many premiums.

Despite the second quarter slowdown in the decline of residential property prices in the UAE, majority of such properties are being sold below their original price.

Apartments in Jumeirah Lake Towers are being sold at the original price and 5 percent below the original price. The trend is more apparent in areas that are not completely developed and the ones that are too highly priced to begin with.

However, the properties that were delivered few years ago, have been faring comparatively better in the current environment. People are continuing to make profits on The Springs and The Greens properties. Even Dubai International City has been doing well, as the original price here was not very high.

The one big change at present, compared to the last few months, is that the sellers are hanging on to their properties rather than moving ahead to take big hits. Sellers are even seen removing their listings from the market aiming to minimize their losses. This was noticed in localities such as the Business Bay and Jumeirah Village South, where the infrastructure is in its early stages.

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