Tuesday, June 08, 2010

Dubai property prices re-bound 12 percent

Property prices in Dubai have re-bounded 12 percent after January when the market had a second trough, paring most losses, following the standstill announcement in November 2009, HC Securities have announced.

Rentals have stabilized after the 4 percent fall in April, but will increase 2 percent in May, with the yield hovering around 6 percent since the start of the year.

The number of transactions too, increased by 1944 units in April, and 2073 in May from 926 units in January.

Although oversupply continues to be the biggest concern, there has been a further slowdown in construction in the existing sites. Also, the development of raw land has been restricted. Moreover, the anecdotal evidence suggests that the job market is growing again, HC Securities reported.

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