Sunday, October 16, 2011

Dubai homeowners still facing aftermath of 2008 recession

Homeowners in Dubai are still facing the impact of the 2008 property recession, with property prices still being too high for them to offload it at current market rates. This fact was revealed in the latest poll by ‘Emirates 24/7’.

The poll revealed that 81percent of respondents are of the opinion that their properties in Dubai are still in negative equity, while more than 55percent revealed that their property is worth 50percent less than their purchasing rates. Another 17percent revealed that they have incurred 30 to 35 percent losses, while 9percent said they are in 25percent negative equity.

One of the respondents to the survey said that with the losses being substantial, he is willing to wait for a couple of years for appreciation in property prices.

However, some owners have agreed that they have noticed that their home value have attained the purchase value levels, while others have seen slight appreciation.

Experts are of the opinion that the drop in prices seen after 2008 has now finally ended with stabilisation seen in real estate sector, and a slight increase in prices of properties in certain communities.

The latest property reports about Dubai real estate market reveal that the prices have remained steady for quality buildings in prime locations this year.

The selling prices and rents for villas have remained stable with only minor declines for apartment rents, while a slight decline of 3percent has been noticed in office market, according to Q3 2011 Asteco report.
Although selling prices for apartments were stable in locations such as Dubai International Financial Centre,

Palm Jumeirah and Jumeirah Beach Residence, properties in Discovery Gardens have seen a 10percent dip. However, quality buildings in well-established developments continued to hold on to their value.

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