Friday, September 17, 2010

Dubai's property sector shows strong signs of re-bound

Dubai's real estate sector has shown indications that it is likely to bounce back.

The September figures indicate that there are less vacant properties in Dubai now, following a sudden late summer rush, reports the latest edition of ArabianMoney, the Gulf's independently-written investment newsletter.

According to the current data analysisi by PropertyFinder.ae website, the residential property vacancy rate has dropped from 11 percent to 8 percent following summer, a decrease of 25 percent in the residential vacancy rate.

According to the Editor and Publisher at ArabianMoney, Peter Cooper, this is a major shift and a significant change in the local realty sector.

In June, it was found that there were 20,130 properties for sale, and 11,797 for rent in Dubai, making a total of 32,000 (nearly 11 percent of estimated 300,000 unit housing stock).

But on 7th September, ArabianMoney present only 14,984 units for sale and 9,634 for rental.

This could be an indication that people are actually coming back after summer, and lower rent has brought back the commuters from Sharjah to Dubai, and has also served as encouragement for those paying higher rents in Abu Dhabi to turn to Dubai and commute from here, he said.

He also said that new property supplies have been slow in entering the market. This could be due to the sudden construction halt witnessed two years ago, he said.

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