Wednesday, October 07, 2009

UAE villa prices stable, while residential prices uncertain

Residential prices in the UAE have been quite unpredictable this quarter, than during the rest of the year. Villa prices however, are likely to remain stable in the short term, the recent report by Landmark Advisory said.

About 60 percent of residential sales during the third quarter were villas, with an increase of 8 percent in prices on an average, the report said.

Demand for apartments focuses on affordable units. Financing continues to remain a major concern, with financed apartment sales dropping to 14 percent during the third quarter.

As for leasing, villa rentals in Dubai increased by six percent, stemming from relocation within UAE. However, unlike the villa segment, apartment rents in Dubai dropped 17 percent during the third quarter.

Listings were highly inconsistent with real market values in Abu Dhabi. Average prices listed for apartments and villas increased 8 to 10 percent respectively. Rents on the other hand, continue to fall in the Capital.

This year's Cityscape event, which begins today, will not be displaying the over-the-top projects unlike otherwise usually displayed, and investors and industry experts and tenants are beginning to get accustomed to the fact that the market is beginning to stabilize.

1 comment:

FourEd said...

It's no secret that certain parts of the UAE have had it tough over the last 2 years and it’s no surprise that the property market is still unpredictable.