Tuesday, January 26, 2010

Completed quality projects in prime localities in demand

Investors are constantly seeking high-quality properties in prime locations of Dubai, due to stability in prices and increase in demand during the past months, say industry sources.

The Senior Investment Consultant at Asteco Property Management, Ken Rohan, said that transactional volumes have also increased, but investors are more focused on quality completed projects in prime localities.

The developments that are yet to be completed are not attracting potential buyers due to uncertainty about completion of the project and the eradication of speculative market, Rohan said.

However, average residential prices are likely to drop this year, with more supply coming into the market. There could even be considerable price declines in the commercial market, due to surplus projects, although the project delays and infrastructure issues, particularly in Business Bay area, could slow down the supply pipeline, said Jesse Downs, Director of Research and Advisory Services at the Landmark Advisory.

The property boom in Dubai stopped during the late part of 2008, causing prices to fall by half. Few analysts have predicted that the market could slowly recover in the first half of this year.

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