Tuesday, May 11, 2010

Dubai property prices record first annual growth following downturn

Dubai property prices have grown two percent during the first quarter, in comparison to same period last year. This is the first such annual increase, after the downturn hit the property sector in the emirate, said a report by Colliers International, the UK-based real estate consultancy.

The house prices recorded a four percent rise during January to March since fourth quarter of last year, the third successive quarterly growth. The house prices are now on par with 2007 levels.

These positive developments show that confidence in Dubai residential sector appears to be returning in-line with Colliers Q1 House Price Index 2010 report, wherein the price index rose by 4 basis points in the first quarter.

While the results offer positive news for Dubai real estate market, the global real estate consultancy remains cautious about the coming year.

Despite the stability in the market, there remain several concerns. The market will see significant oversupply by end of the year, and therefore, the index may experience some fluctuations when going ahead. But, it is to be watched as to how much of that supply matches the end-user demand for community-oriented developments, said Ian Albert, Regional Director, Colliers International.

Colliers estimates that 41,000 housing units will enter market by end of 2010, mostly in low to mid-income categories. This additional stock is likely to create a downward pressure on property prices, although it is yet to be clear if this supply will bear a negative impact on established projects.

4 comments:

Arcus Properties said...

It seems good that real state market is improving now but still need a lot more because the difference in demand and supply is a great threat for an investor thus, all in all, powers of real estate have to review their policies.

Dubai Blog said...

The first quarter brought a wave of confidence in Dubai real estate market. The market indicators are showing growth in property prices. For further developments, it is necessary that there is a balance in supply and demand and real estate requires the transparency in all the sectors for continuous growth.

Dubai Real Estate said...

It’s a good sign for investors that real estate market of Dubai is rising up because it has the great potential. They have to keep an eye on demand and supply. They should be creating balance between new and established buildings.

Money Management Directory said...

Dubai properties are growing little bit that is good news for the real estate market because it has a large prospective. Positive developments in Residential sectors can boost the whole market.