Monday, August 10, 2009

Dubai housing prices dip 24 percent in Q2 2009

Residential prices in Dubai fell by 24 percent during the second quarter, from the previous quarter, although at a comparatively slower rate, inline with improving global property markets, the Landmark Advisory said in its latest report.

In Abu Dhabi, however, the prices fell less during the same period, as the emirate continues to tackle the global downturn better than its neighbour.

The average selling price for villas in Dubai dropped 24 percent, while that of apartments fell 17 percent in the second quarter. During the first quarter, however, the prices of villas and apartments fell by 32 and 23 percent respectively compared to the fourth quarter of previus year.

Dubai property sector has been hit hard by the global economic crunch, but the improvement seen in more mature markets such as the US and Britain, comes as a happy sign to investors.

Residential prices in Dubai is hoped to stabilize by the fourth quarter of this year, after falling 9 percent from the previous quarter, Colliers International, mentioned in its report.

Rents of villas in Dubai fell by 19 percent, touching Dh.220,350 during the second quarter, while that of apartments dropped 23 percent touching Dh.129,900. The volume of transactions of villas and apartments increased 25 percent and 20 percent respectively, as several people relocated from Dubai to Abu Dhabi and Sharjah.

In Abu Dhabi, although the selling prices of apartments fell by 11 percent, and there was an 8 percent decline in villa prices, during the second quarter, compared to previous quarter, the prices are unlikely to fall further, the report confirms.

The rate of decline slowed considerably, as prices for both categories fell 20 percent and 30 percent respectively during the first quarter from the fourth quarter, Landmark said in May.

Rents in apartments and villas fell by nearly 10 percent during the second quarter. With more supplies likely to enter the market, rents for villas and apartments are likely to fall considerably, says Landmark Advisory, part of real estate brokerage and consultancy Landmark Properties.

No comments: