Thursday, February 04, 2010

No major upturn seen in Dubai realty market

There has not been any major upturn in the Dubai real estate market, as it continued to remain sluggish during the final quarter of 2009 with lease rates continuing to fall, said the CB Richard Ellis Report.

The Dubai Land Department statistics indicate that the total number of transactions fell 17.7 percent, touching 520 during the fourth quarter of 2009, compared to the same period the previous year.

The lease rates for Dubai residential units recorded a marginal decline in 2010, as considerable volume of new homes reached their final stages of construction, reported CB Richard Ellis.

As for the commercial office space market, the lease rates had already bottomed out, with rents reflecting levels during 2005, the brokerage firm said, while adding that rates in the central business district area will remain the same, as there may not be any major supply in the short-term.

However, new commercial office areas are already seeing high vacancy rates and are likely to see a dip further, as landlords continue to give greater incentive packages when they compete to woo tenants, CB Richard Ellis said.

Even the apartment rates will drop this year, they said.

1 comment:

Dubai Blog said...

The decline in the residential and office space properties was due to the world economic crises. But now the economic problem is solve down and I hope Dubai Properties will recover soon and comeback again like the Dream city of the world.