Real Estate & Economic News in United Arab Emirates from Propertyshowrooms.com

Dubai property outperforms Abu Dhabi real estate

Fri, 16 Mar 2012 00:00:00 GMT

New figures showing the value of residential properties in Dubai and Abu Dhabi have revealed a growing disparity in prices between the two emirates.

According to REIDIN.com, the cost of buying a home in Dubai increased by 1.05 per cent in February, compared to the previous month.

However, the opposite was true in Abu Dhabi, where the value of residential real estate slid by 0.49 per cent in the same period.

Villas were the best-performing type of property in Dubai, experiencing monthly price growth of 1.54 per cent, while an annual rise of 16.49 per cent was recorded.

In Abu Dhabi, the villa market is also stronger than that for apartments, with the value of the former asset class climbing by 0.19 per cent in February and by 0.46 per cent year-on-year. These gains were offset overall by the 1.04 per cent decrease in apartment prices last month, with this type of home shedding nine per cent of its value since February 2011.

Earlier this month, the Dubai Land Department published data showing the volume of real estate transactions in the emirate increased by 84 per cent in the first two months of this year, compared to the same period in 2011.

Property transactions in Dubai rise

Tue, 21 Feb 2012 00:00:00 GMT

An increase in the number of real estate transactions completed in Dubai in 2011 has been recorded.

Figures published by the Real Estate Regulatory Authority (RERA) of Dubai revealed 20 per cent more sales were concluded last year than in 2010, Global Property Guide reported.

According to the organisation, these deals were worth a collective 48 billion UAE dirhams (£8.2 billion).

Chief executive officer of RERA Marwan bin Ghalaita commented: "We can expect 2012 to show the same increase or stay at the same level. We are marketing the real estate environment as transparent and secure."

Investors with property in Dubai may also be encouraged by statistics recently published by REIDIN.com.

The latest residential property price index for the emirate showed such assets increased in value by 1.21 per cent in January 2012 compared to December 2011.

Meanwhile, the cost of renting a home in Dubai also climbed by 0.87 per cent in the same period.

Dubai office market expected to improve

Tue, 4 Oct 2011 00:00:00 GMT

An improvement is expected in the Dubai office market as vacancy rates remain low and there has been three consecutive quarters of growth.

This assertion was made by Matthew Green, who works for CB Richard Ellis Middle East, and it could mean that property in Dubai increases in price in the coming months.

Writing for Business Intelligence Middle East, Mr Green observed central business district (CBD) locations remain in demand. However, those outside this area are experiencing deflationary pressures at present.

"A similar situation is apparent in upcoming office locations such as JLT and Business Bay where a massive influx of new commercial supply is forcing rates downwards," he added.

The Global Competitiveness Report for 2011-12 placed the United Arab Emirates eighth out of 133 when it comes to the quality of the infrastructure.

It comes after Dubai Residential Property Price Index for August recorded a 0.5 per cent rise when compared to July.

Dubai property prices rise

Fri, 23 Sep 2011 00:00:00 GMT

A monthly increase has been recorded in the REIDIN.com residential property price index for Dubai, with real estate values up by 0.5 per cent in August over July.

The figures also revealed that villas are performing much better than apartments in the current market, with such assets seeing their worth increase by 1.34 per cent during the same period.

Meanwhile, apartment sales prices were down overall by 0.3 per cent, although REIDIN noted that flats measuring 50 sq m or less bucked the trend with a boost to values of a nominal 1.38 per cent.

According to the firm's data, real estate has experienced gradual monthly price rises since February of this year, with the greatest increase in this time coming in June, when values gained 0.87 per cent.

Earlier this week, the Dubai Land Department signed an agreement with Wasl Asset Management Group to try and kick-start stalled building projects.

The pair aim to offer investors the opportunity to buy or lease properties in partially completed developments, with the aim of using this finance to complete such schemes.

Investors 'have confidence' in UAE property

Wed, 17 Aug 2011 00:00:00 GMT

The United Arab Emirates's (UAE's) property market has been boosted by an announcement from the International Monetary Fund, which upgraded the projected growth figures for the Gulf Region.

As a result of the improving economic outlook, investors have become more confident about the state of the UAE real estate sector, the International Business Times reported.

Senior vice-president of DAMAC Properties Niall McLoughlin told the publication that Dubai in particular has seen investors come back to the market, describing it as being "more stable and sustainable".

"Gulf investors are flooding back into Dubai and the broader UAE's property sectors on signs that the market has bottomed out and is already well advanced with the recovery phase," he stated.

Last month, Jones Lang LaSalle released its Dubai Real Estate Market Overview for the second quarter of the year and revealed that while the hospitality and retail sectors had made a recovery, office and residential property was lagging behind.

However, the firm did note that the emirate's real estate industry was showing signs of stabilising.

More UAE properties to be made available at a discount?

Thu, 14 Jul 2011 00:00:00 GMT

Property investors keen to grab a bargain abroad could look to developments in the real estate market in the UAE, as sellers in Dubai are being advised to offload their assets at a discount.

Jesse Downs, director of management consulting at Jones Lang LaSalle Middle East and North Africa, told Emirates24/7 that the market needs to be prompted into action and has encouraged vendors to sell at a loss.

"We want to see more of these offers because it shows that the primary market is becoming more realistic and, assuming discounts are sufficient, will spark transactions," the expert explained.

The news could see savvy property investors able to take advantage of the situation as purchasing now could help the housing market in the country recover, providing potential returns if it does.

Jones Lang LaSalle recently reported that the real estate market in Dubai is already showing signs of stabilising following the sales slump experienced in 2011.

The hospitality and retail sectors in particular saw sound growth in the second quarter, the company said.

Rents for Abu Dhabi properties fall

Fri, 8 Jul 2011 00:00:00 GMT

Residential properties in Abu Dhabi experienced a decline in rent during the second quarter of the year, new research has shown.

Property management firm ASTECO published a report, which noted that rents dropped nine per cent in the three months between March and June.

Oversupply and a lack of new tenants entering the market are putting downward pressure on prices, the study found.

The company also stressed that this means renters will be looking for new homes that offer better value for money than their current accommodation.

Last month, Bloomberg reported that the decision by the United Arab Emirates (UAE) government to extend the visas offered to foreign investors could have an impact on the real estate sector.

Citigroup analyst Farouk Soussa told the news provider that it could "significantly boost demand" for residential properties in the UAE. However, he added that the completion of new developments over the coming years could reduce the overall positive effect of the visa changes.

Property values on Dubai's Palm drop

Thu, 7 Jul 2011 00:00:00 GMT

The value of residential properties on Dubai's Jumeirah Palm have fallen dramatically since their peak, new research has revealed.

Arabian Business released data which shows that the average price per square foot for apartments on the complex currently stands at 650 UAE dirhams (£110.4).

Real estate located on its shoreline has taken a hit of almost 70 per cent in some cases, with the lowest listed price for such apartments standing at 1.7 million UAE dirhams, the organisation noted.

At the end of June the UAE government announced new rules for property investors who own real estate worth more than one million UAE dirhams. Previously foreign buyers were only eligible for a six-month visa, now they will be issued with a three-month multiple-entry visa.

Chairman of Dubai's Emaar Properties Mohammed Alabaar commented at the time that the move will "significantly enhance investor confidence and drive the growth of the country's property sector".

Dubai property market is 'stabilising'

Mon, 18 Apr 2011 00:00:00 GMT

Demand for property in the UAE could be set to rise following a recent report from a leading real estate firm in the region.

Research relating to the first three months of 2011 by Asteco has revealed that, for the first time in two years, the Dubai property market has stabilised.

According to the firm, apartment rentals averaged a decline of just two per cent over the three-month period.

However, despite the slowdown in average rents there were regional differences, with drops of as large as five and seven per cent in some areas.

Elaine Jones, chief executive officer of Asteco Property Management, noted that movements within the market were being driven by a desire by buyers to attain good quality, value for money stock.

"The rental market stabilised in certain areas, with a downward trend in others, albeit at a lower rate. This is attributed to the pressure of new stock on the already oversupplied market, especially for apartments and offices," she said.

It follows a recent report by CB Richard Ellis which revealed that Dubai is now considered one of the top shopping destinations in the world.

Property set to perform strongly in the UAE next year

Tue, 4 Jan 2011 00:00:00 GMT

Individuals looking to purchase real estate in the UAE will be encouraged to learn that the property market in Dubai is on track for revival in 2011.

According to the chief executive officer of Damac, one of the emirates leading developers, the sector is likely to be one of the best-performing in the New Year.

The company cited data from Saudi Arabia, Lebanon and Egypt, which suggested that their property sectors would see double digit growth.

"There is still a lot of cash on the sidelines, but there are opportunity costs to keeping liquid cash," Damac managing director Ziad El Chaar said.

"Investors will now be weighing up their options about where to invest next year and property is shaping up to be one of the best performing sectors."

However, other market analysts do not share the same optimism for the future of the Dubai property market.

Paul Richard, associate director at Cluttons in Dubai, told Bloomberg news that there is "no parity between supply and demand", adding that he expected the market to remain in decline for the coming two years.

Prices in the UAE could fall for 'another two years'

Mon, 20 Dec 2010 00:00:00 GMT

Individuals looking to purchase property in the UAE may be interested in the recent comments of analysts in the region.

According to real estate experts, residential prices in Dubai could continue to plummet for another two years.

The emirate has seen its property market hit rock bottom with prices in some locations dropping by 60 per cent since the peaks of 2008.

Values may fall as much as another 20 per cent by the end of 2012, according to a new assessment from property broker Landmark Advisory if new units are built as planned.

Currently, about 48,000 new homes are due to come on to the market over the course of the coming two years, Jesse Downs, director of research at Landmark, said.

She explained that the influx of new properties will contribute to a reduction in rents, which will in turn push values lower.

"Rents are very important because occupier demand leads investor demand,’ she added.

UAE property market attracts British buyers, but fear still remains

Tue, 20 Jul 2010 00:00:00 GMT

British buyers are beginning to rekindle their interest in the UAE property market, it has been suggested.

Terry Hobbs, media manager at propertyshowrooms.com, has claimed that, although the levels of interest are nowhere near their peak of a few years ago, buyers are beginning to return to the sector.

"We are still not seeing the same levels of traffic as we were a year and a half or two years ago - nowhere near as much. I think there is still quite a bit of fear there," Mr Hobbs confirmed.

His comments come after research from Asteco found that both property prices and apartment rental rates have fallen in the past 18 months.

According to the organisation, rents fell by between seven and 15 per cent during the second quarter of 2010, compared to the first three months of the year.

However, the latest report from CB Richard Ellis has suggested that there are positive signs for the year ahead, with tourism rising and slight reductions in average lease rates.

UAE still not in property recovery

Fri, 21 May 2010 00:00:00 GMT

The property market in Dubai has been criticised, with some analysts claiming that prices in the emirate will continue to fall.

According to a new report by Bank of America Merrill Lynch, the real estate sector in the destination is still a long way off from becoming a mature market.

The organisation claims that property is "fragile" and the level of transactions currently taking place is "weak".

Writing in its recent report, Dubai - aftermath of a bubble, the bank says that it expects prices to tumble by another 15 per cent this year - on top of the 45 per cent decline witnessed during 2009.

"We think it is still early days in terms of clearing inventory and we would need to see a convincing rise in transactional activity before calling the bottom," the report said.

"Potential buyers are still credit constrained and lacking confidence, while sellers demonstrate balance sheet strength and holding power."

Officials in the UAE are starting to clamp down on developers who are stalling on commencing new builds.

The Real Estate Regulatory Agency for the region is cancelling projects which are unlikely to start and allowing investors to recoup their money.

Confidence is returning to UAE market as developers listen to consumer demand

Fri, 23 Apr 2010 00:00:00 GMT

Middle Eastern investors will be pleased by news that confidence is beginning to return to the property market in the UAE.

Developers in the region have announced that they are planning on reacting more efficiently to consumer demand with their new projects in an attempt to lower costs and tempt potential purchasers back to the market.

"You have to provide a service and a product that people want. It's no longer a 'build and they will take it' market," explained Ian Albert, regional director of Colliers International.

However, despite the positive signs in some areas of the UAE, other regions will take longer to return to normal.

According to the latest report from Jones Lang LaSalle, the real estate market in Dubai is not poised to begin recovery until at least 2011, because of the large number of unoccupied properties and low demand in the emirate.

The UAE is currently top of the global property registration index, Business 24-7 has reported.

State intervention needed to kick-start UAE market

Thu, 8 Apr 2010 00:00:00 GMT

In order for the property market in the UAE to return to pre-economic crash levels more state involvement is needed, experts have claimed.

Additional loans and lengthier visas for potential investors are required to help put the housing market back on track in the emirate before steps can be taken towards real estate recovery.

This is the view of Nick Maclean, regional head of property consultancy CB Richard Ellis, who believes that the UAE central bank needs to play a vital role in rejuvenating the property market.

Discussing the six-month period buyers are currently given to complete their purchases, Mr Maclean claimed that "shortness of residency is definitely keeping the buyers away."

He explained: "We do need to elongate the window that people have so they don't need to go back and forth. The period we have at the moment is a barrier to entry."

In addition, Mr Maclean points to the model adopted by the UK government as one which could be followed in the UAE, with banks being encouraged to lend more money for mortgages.

One of the region's leading developers recently stated that the property market in the emirate had reached the bottom and as such was ready to begin its gradual recovery.

UAE property market recovery to start in 2011

Thu, 4 Mar 2010 00:00:00 GMT

The real estate market in the UAE is poised for recovery during 2011, it has been claimed.

According to one of the largest developers in Dubai, Deyaar, the property market has reached the bottom in the emirate and is ready to begin posting a steady recovery.

Markus Giebel, Deyaar chief executive, said: "In my personal opinion Dubai will see a recovery in year three, by which I mean 2011."

Mr Giebel did not speculate on whether the property market would go up or down in 2010, but he remained confident that recovery would start the following year.

"Dubai's fundamentals are still strong. If you believe in Dubai, you should believe in Dubai's real estate sector. Because if Dubai is healthy, then the real estate sector will be as well," he added.

Meanwhile, property developer Asteco has reported that there has been a shift in the type of buyers purchasing property in the UAE.

Since the economic downturn, many investors have been avoiding the property market, but now British lifestyle buyers are taking their place.

UAE remains popular despite the risks

Tue, 9 Feb 2010 00:00:00 GMT

The UAE is still a popular choice for property investors despite increasing risks, it has been claimed.

A new report carried out by property company FutureBrand Gulf Real Estate showed that 63 per cent of survey respondents said that they are still likely to invest in the region because it offers good "value for money".

The confidence shown exists despite research showing that a lack of trust in developers has had a negative impact on the market.

According to the report, factors such as the potential to lose money and awareness of loopholes and corruption in the emirate should mean that homebuyer confidence will weaken, but buyers' attitudes seem to remain unchanged.

Abu Dhabi is recommended as the region best placed to lead the real estate recovery.

"With its financial strength and its rise as a destination of note … it is poised to be the first place in the region to attract foreign investment and partnership opportunities in the future, should the emirate seek these," the reports says.

REDIN.com has launched a Sales and Price Index for the region with the aim of becoming a benchmark for property data.

New 'accurate' property index will increase transparency in the UAE

Mon, 8 Feb 2010 00:00:00 GMT

Property prices in the UAE are on the rise once again, according to a new sales index which promises to become a benchmark for property data in the region.

The Sales and Price Index for Dubai (SPID) - which bills itself as the emirate's first accurate property index - shows that prices increased by 0.7 per cent in the final quarter of 2009.

By far the largest increase was the average price of villas, which have climbed 2.6 per cent in the same period.

SPID has been launched by REDIN.com in conjunction with the Real Estate Regulatory Agency and Dubai Land Department with the aim of increasing transparency in the region.

Ahmet Kayhan, chief executive of REDIN.com, explained: "Ensuring the accuracy of market data and relevance to local market conditions is our top priority, which has prompted us to appoint an advisory committee, comprised of academicians and industry professionals from different emerging economies to monitor the quality of the indices."

Business Monitor International's UAE Tourism Report has suggested that the emirate is likely to see a resurgence in tourism in 2010.

'Stable' prices in the UAE represent good news for investors

Mon, 18 Jan 2010 00:00:00 GMT

Investors in the UAE will be encouraged to hear that property prices stabilised in the last quarter of 2009.

According to a report published by property company Asteco, an improved economic position and more readily available mortgages have contributed to a brighter future for the emirate.

Elaine Jones, chief executive of Asteco, commented that lifestyle communities such as Palm Jumeriah are managing to hold their own in the tough economic climate.

Other areas that are maintaining value well include Downtown Burj Dubai and Dubai Marina and the report indicates that the reason for this is the ability of these locations to offer residents an abundance of retail and leisure facilities.

"With continuous improvement of infrastructure and completion of residential and hotel developments, has become a sought-after destination," Ms Jones said.

At a recent seminar discussing how to learn lessons from the world economic slump, Abdul Rahman Al Saleh, the director general of Dubai's department of finance, said that the emirate had reasons to be optimistic.

UAE tipped to resume growth

Fri, 8 Jan 2010 00:00:00 GMT

Economic growth will resume soon in the UAE, its central bank governor has said.

Sultan Nasser al Suweidi commented: "There will not be growth at high levels but there will be growth," stating that the improvements in the world economy will aid the recovery in the county.

He also said some banks will still have bad loans to deal with, although one economic problem that will not be an issue is inflation, which he tipped to stay low.

The prediction may suggest those investing in property in the UAE this year could be timing their purchase well, as the renewal of growth could see its value rise.

Dubai may be hoping that it gains a boost from the opening this week of the Burj Khalifa, the tallest man-made structure in the world.

Known as the Burj Dubai until it was renamed after the ruler of Abu Dhabi - who authorised funding to help Dubai through its recent financial crisis - the building was completed this week and officially stands at 2,716 ft high.

UAE prospects 'improving'

Wed, 23 Dec 2009 00:00:00 GMT

Property prospects are improving for the UAE, it has been stated.

Strategic consulting firm AT Kearney's 2010 Real Estate Global Opportunity Index has suggested that the outlook for the country next year is better than when it last produced the assessment in 2008.

Managing director Dr Dirk Buchta said: "The countries of the Middle East and north Africa continue to improve in the index, even as they are hit by the economic crisis. The United Arab Emirates jumps significantly, from 31st to 18th place."

This ranking means the nation is regarded as a better place to invest in real estate now than it was last year.

While Dubai has made obvious errors, the Abu Dhabi outlook has been described positively by the company, noting that tourism is rising, construction costs are falling and banks are loosening lending criteria for purchases.

The UAE could be a very good location for investors seeking bargains in 2010, according to chief executive officer at Homesgofast.com Nicholas Marr.

He stated that Dubai may be a major beneficiary of smart buyers looking to make acquisitions and enjoy capital gains as values rise in the future.

UAE 'to see property resurgence'

Fri, 6 Nov 2009 00:00:00 GMT

Recent data showing a rise in property prices in Dubai is evidence that the UAE is seeing a housing market revival, it has been claimed.

Director at estate agency Select Property Giles Beswick said the "initial signs" of recovery are becoming clear amid rising optimism.

He added: "Confidence has been reinvigorated in the market and the UAE is well placed to bounce back", citing a hands-on approach by the government of Dubai as one reason for the improving situation.

Mr Beswick suggested that underlying fundamentals are strong, while places like Dubai will be boosted by continuing developments such as the completion of the Burj Dubai - the tallest building in the world - and the Dubai Metro.

Recent figures by property firm Colliers International revealed that in the three months to September property prices had shown a seven per cent quarter-on-quarter rise, with transactions up 64 per cent.

The price increase was the first of its kind for a year.

Dubai property market will improve, says expert

Thu, 6 Aug 2009 00:00:00 GMT

The real estate market in Dubai will begin to recover as the global economy improves, it has been suggested.

Managing director of Harbor Real Estate Brokerage Mohanad Al Wadiya told Emirates Business 24/7 that although the sector has been adversely affected by the economic downturn, the situation is by no means "terminal".

"We will see a much improved level of activity in the later part of this year," he remarked, a comment that may be of interest to those thinking of purchasing investment property in the emirate.

Mr Al Wadiya added that improved accessibility of credit and the re-launch of Dubai as a commercial destination will further aid the recovery of the real estate market, but warned that there is still "lots of work to be done".

In related news, Christopher Chadd of Property Frontiers recently urged investors looking for foreclosed property to consider the options available in neighbouring emirate Abu Dhabi.

Property prices 'rising again in UAE'

Fri, 12 Jun 2009 00:00:00 GMT

Property prices are starting to rise again in the UAE, it has been stated.

Speaking to news agency The National, head of international sales at LLJ Property Andrew Covill said: "The availability is suddenly a lot less in the last three to four weeks and we are seeing a dramatic increase in demand."

The news provider said that while news that prices are suddenly rising again after a nine-month dip only applies to completed and nearly-completed property, the figures still defy the recent findings of a report by Better Homes that suggested a fall in values would last until 2011.

Senior economist at Standard Chartered Bank Philippe Dauba-Pantanacc said the news of stabilisation had come as a "surprise" to analysts who had expected more falls.

The view that the property market in Dubai is getting better was emphasised by chief executive of Damac Properties Peter Riddoch, who told Gulf News the market there is showing signs of "bottoming out".

Dubai 'stands up to analysis'

Thu, 4 Jun 2009 00:00:00 GMT

A study of Dubai and its property market reveals that it has more to offer than some press headlines suggest, it has been stated.

Referring to Dubai as a "city of rumour", organiser of the Worldwide Property Show Mike Bridge said that it has become popular to knock the emirate due to the fact that its property market has been so successful in the past few years.

In fact, he said, far from declining, the market is now underpinned by residents well able to move from renting to buying, with short-termist investment strategies disappearing and other forms of buying taking their place.

"Now, if you really analyse the situation, the country has the facilities to encourage overseas investors to buy a holiday home," Mr Bridge stated.

Figures from Colliers International for the first quarter of 2009 revealed that Dubai saw a major price correction in the period, with values falling by 41 per cent.

However, this may stimulate interest from buyers more able to afford to buy there.

Dubai job cuts 'will influence house prices'

Sat, 21 Feb 2009 00:00:00 GMT

The extent to which house prices in Dubai fall over the coming months will be largely influenced by job cuts, it has been claimed.

According to Vince Easton of property consultancy firm Sherwoods, the job market in the emirate is likely to have an effect on real estate prices over the coming quarter, Arabian Business reports.

Speaking at the Dubai International Property show, Mr Easton told the news source that there may be another round of job cuts taking place in March, noting that this will have a "big impact" on the prices of Dubai property.

"We are a nation of expats who have come here to work, make money and live the dream. If jobs are under threat it makes that dream more difficult," he stated.

The Khaleej Times recently stated that the Dubai International Property had opened to subdued demand, with fewer visitors in attendance than last year.

Dubai owners and developers 'to jointly manage service charges'

Thu, 19 Feb 2009 00:00:00 GMT

Dubai's Real Estate Regulatory Authority (Rera) has announced new regulations intended to help property owners in the emirate combat rising prices.

Included in the proposals is a plan to allow owners and developers to jointly manage service charges for buildings when they become members of an owner's association.

These bodies, which would be registered with Rera, would then become responsible for the upkeep of properties.

Vincent Easton, director of sales at Sherwoods, said that the changes are a "good step".

"There has been so much frustration and anger about services charges being levied at the owners," he told Gulf News, adding that Rera is "bowing to public pressure" with the new regulations.

Earlier this year Rera moved to encourage

property investors back to Dubai by introducing a ruling barring developers from beginning sales until they have completed 20 per cent of a building's construction.

The body hopes that this will settle disputes that have been occurring due to construction firms charging high prices for a development that has not yet began.

Dubai theme park hit by delay

Fri, 13 Feb 2009 00:00:00 GMT

Dubai's World of Discovery theme park has been delayed due to the credit crunch, it has emerged.

Developer of the site Nakheel has postponed construction for a year, as it looks to cut back its operations in the current financial climate.

The first phase of the theme park - which is being developed in partnership with Busch Entertainment (BEC) - was due to open in 2012, with the second section originally scheduled to be completed three years later.

Each of the park's four areas are designed to form a killer-whale-shaped island known as the Crown, which is located art the top of Palm Jebel Ali.

"While design work and site preparation on the crown of Palm Jebel Ali has been delayed for 12 months, BEC and Nakheel remain committed to the Worlds of Discovery Dubai partnership," Nakheel said in a statement.

The announcement follows the news that Egypt's Housing and Development Bank is considering purchasing a stake in Damac, another Dubai-based developer that currently has a number of projects underway in Egypt.

Dubai property values 'to fall 20 per cent'

Thu, 29 Jan 2009 00:00:00 GMT

Prices of property in Dubai could fall by an average of 20 per cent, the chairman of the emirate's largest developer has stated.

Mohamad Alabbar, head of Emaar Properties, noted that the firm expects values of homes in Dubai to drop further in 2009, with the decreases varying across the emirate.

However, he dismissed claims that real estate values could be cut by up to 60 per cent, telling the Al Khaleej newspaper that such a decline would be "illogical".

"There will be a variation in the percentage of decline based on the location and level of units," he added, noting that in some areas the fall could be as little as ten per cent.

Recent Credit Suisse figures published in the Khaleej Times suggest that the fourth quarter 2008 financial results for Middle Eastern property developers will be varied, with Sorouh Real Estate and Aldar Properties expected to record strong results but Emaar Properties likely to see profit falls.

Dubai property market 'will improve'

Mon, 26 Jan 2009 00:00:00 GMT

Dubai's property market is set to see an increase in activity when liquidity returns to the sector, one report has forecast.

According to Business 24-7, a study by HSBC Holding has suggested that buyer confidence will return once finance becomes easier to obtain.

The survey indicated a fall in real estate prices in Dubai during the last month of 2008, with values dropping 23 per cent on average, resulting in apartment prices being 20 per cent lower than their peak value in September of last year.

However, the study also noted that sales volumes have increased during the start of 2009, with 1,782 transactions being recorded for the first two weeks of January.

And HSBC Holding's research revealed that over 5,800 transactions took place in the fourth quarter of 208 - a 226 per cent year-on-year increase.

In related news in the emirate, it was recently claimed that renting property in Dubai is likely to become more expensive over the coming months, despite a decree from ruler Sheikh Mohammed bin Rashid Al Maktoum freezing rents for those tenants that renewed contracts last year.

Real estate show organisers and sponsors upbeat about future of property industry in Middle East

Mon, 26 Jan 2009 00:00:00 GMT

The first real estate and property investment show to take place in the Middle East since the economic downturn began to impact on the region opens tomorrow...

UAE: Investors flee after brutal losses at global markets

Thu, 22 Jan 2009 00:00:00 GMT

Dubai stocks were routed yet again as investors continue to flee the market following brutal losses on international exchanges...

UAE banks have enough liquidity, says central bank

Thu, 22 Jan 2009 00:00:00 GMT

United Arab Emirates' central bank governor said the liquidity of banks in the Gulf country was "in good shape" in a statement carried Wednesday by state news agency WAM...

UAE shares decline again led by property sector

Thu, 15 Jan 2009 00:00:00 GMT

UAE markets declined yesterday led by property stocks and financials as worries of poor results in the fourth quarter, just days away from being announced, continued to drive retail investor behaviour...

UAE Banks Top Realty Exposure

Mon, 5 Jan 2009 00:00:00 GMT

While banks in Kuwait and the UAE have the highest exposure to the real estate sector, Saudi Arabia's banking sector has the least real estate exposure, at just 7.5 per cent of total loans according to a recent report from Credit Suisse...

Ajman’s property sector shows robust figures despite finance crisis

Tue, 30 Dec 2008 00:00:00 GMT

Dubai: Investments into Ajman's property sector have crossed the Dh400 billion mark, according to reports. Despite deflated markets around the world and also here in Dubai, such robust figures mark a good year ahead for Ajman and its investors. Property prices also saw an overall appreciation of 40 per cent in 2008. Fahad Sattar Dero, chief executive of...

Outlook bullish for UAE banks in the long term

Mon, 22 Dec 2008 00:00:00 GMT

The long-term picture for UAE banks looks positive given the inherent strength of the economy and the growing consciousness of loan-book quality, new research has said...

Realty and oil worries add to investors' nervousness

Mon, 22 Dec 2008 00:00:00 GMT

The Dubai Financial Market yesterday fell by 5.58 per cent to close at 1,802.77 points, reflecting nervousness among investors due to worries about the real estate sector and oil prices....

Monthly house price index shows cooling Dubai property market but Central Bank is upbeat

Fri, 12 Dec 2008 00:00:00 GMT

The property market in Dubai is cooling rapidly according to the latest house price index but the slump is likely to be limited according to the Gulf's central bank...

Financial crisis 'impacting Dubai market'

Thu, 11 Dec 2008 00:00:00 GMT

The sharp fall in property prices in some areas of Dubai has been caused by a failure of the emirate's financial system, one real estate manager has stated.

Speaking to Property Wire, chief executive of the Dubai-based Sweet Homes Group Fahad Sattar Dero explained that sales in the sector will resume once the uncertainty surrounding the finance system is removed.

And he noted that the unrest caused by the credit crunch is resulting in many buyers holding off on making purchases.

"It is now probably time for a reality check and an opportunity for investors to go back to their drawing boards and wait for the right values to come back to the market," he told the news source, adding that those considering investment need to remain patient if they want to avoid making a loss.

Property Wire recently reported that some areas of Dubai have seen property values fall by as much as 40 per cent.

UAE Central Bank's Foreign Assets Fall But Loans, Advances Surge

Wed, 3 Dec 2008 00:00:00 GMT

The foreign assets of the UAE Central Bank plunged by nearly Dh91 billion in the first half of 2008 to record one of their biggest declines in such a period of time, its balance sheet showed...

Dubai developers 'must delay payment requests'

Mon, 1 Dec 2008 00:00:00 GMT

A new report focusing on the Dubai property market has outlined a rescue plan for the emirate's faltering property market.

RichVille's Dubai Real Estate Market Report for the fourth quarter of 2008 has revealed that although the economic slowdown may reduce demand for property in the region, the lack of finance available for developers could also result in the delay or cancellation of construction projects, causing demand to outstrip supply in the medium term.

However, founder of RichVille and chairman of member firm Tharaa Holding Tariq Ramadan noted that one of the only ways for the area's property market to be stabilised is for property developers to delay asking for payments from buyers.

"It is very interesting to see that while the authorities around the world are taking all possible measures to revive their real estate markets, authorities in Dubai seem to be doing nothing to support the real estate sector," he added.

In related news today, former tennis player and health club owner David Lloyd announced he is to invest in Dubai property.

Uncertainty batters Dubai shares

Tue, 25 Nov 2008 00:00:00 GMT

Dubai shares dropped sharply as investors sentiments were affected by a lack of clarity on the Amlak-Tamweel merger and the news that the three big real estate companies of Dubai are in talks about pulling back property supply...

Newly formed government council will stand by Dubai property market

Mon, 24 Nov 2008 00:00:00 GMT

The Dubai property market is undergoing a 'healthy correction' due to the global financial crisis but the government will intervene to help if it has to, it was announced today...

Azizi Invest to Assist Buyers Affected By Economic Crisis

Fri, 21 Nov 2008 00:00:00 GMT

UAE's Azizi Investments announced that it anticipates to help any buyers - whether investors or end users, who were adversely affected by the current global economic climate...

Real estate stocks take another thrashing

Mon, 17 Nov 2008 00:00:00 GMT

The end of the battering of real estate stocks on the Dubai Financial Market seems to be nowhere in sight...

Banks slash deposits with UAE Central Bank by Dh60bn

Mon, 17 Nov 2008 00:00:00 GMT

UAE banks slashed their deposits with the Central Bank by more than Dh60 billion in the first half to quench their thirst for liquidity following a sharp growth in domestic demand for credit, the Central Bank said....

Dubai property boom halts

Sun, 16 Nov 2008 00:00:00 GMT

DUBAI: Dubai property shares plunged and its biggest private developer slashed jobs this week as the global financial crisis tightened its grip on the...

Slowdown In Dubai Realty Sector Will Be Shortlived

Wed, 12 Nov 2008 00:00:00 GMT

The real estate industry in Dubai is currently at a standstill, as fewer people are buying new properties due to much speculation in the market and the liquidity squeeze that gripped the local banking sector recently, experts said...

Dubai real estate prices may not come down

Wed, 12 Nov 2008 00:00:00 GMT

Dubai's real estate will not see a decline in prices from what they were prior to the global market meltdown, according to a new report...