Saturday, January 21, 2012

Residential property prices in Dubai, set to bottom out in 2012

The declining residential property prices will finally bottom-out this year, although, the real revival wont’ begin until 2013.

Predicting the future of property sector in Dubai, the global property consultant Jones Lang LaSalle (JLL), said that although the residential owners can heave a sigh of relief, the poorly managed projects or those isolation from other infrastructure, will pull back the desired properties and will not allow them from rebounding, the experts said.

The residential sector in Dubai is close to bottoming out, with prices already on the increase in major locations, said Head of Research – MENA at JLL, Craig Plumb.

This year, recovery in individual projects may happen, while the year 2013 will be the recovery year for the whole market. The year 2012 may be a good year for tenants, as office rents may continue to decline, JLL said. This may benefit UAE in its competition with neighbours, for attracting international firms.

However, other forecast trends seem less positive. JLL expects hotel earnings in Abu Dhabi to face pressure, with the launch of new properties.

Plumb has called on lawmakers to keep a closer look on initiatives such as amendments to terms of property visa, so as to ensure they are followed up after announcement.

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