Buyers and renters focus on new Dubai
Categories: Real Estate
New residential areas such as The Springs, Jumeirah Lake Towers and Discovery Gardens are witnessing increasing interest from buyers and renters, according to a property website.
The findings of propertyfinder.ae are based on approximately 500,000 page visits to the website during February and highlights ongoing activity in the Dubai real estate market despite the economic downturn.
Commenting on the survey results, Marcello Sambartolo, Head of Marketing at propertyfinder.ae, said: "This survey has revealed some really interesting statistics. We are seeing a real shift in rental interest towards new residential areas such as Discovery Gardens and Jumeirah Lake Towers where rents are more competitive. There is still interest from end-users looking to invest in Dubai, which is now offering opportunities to capitalise on the recent drop in house prices."
RECOVERY FROM 2011
Dubai residential real estate prices will start recovering from 2011, according to a Reuters poll. Prices would probably bottom out after 2010, with seven of nine forecasters saying the cost of real estate would hit a trough next year or later.
"We do not see any near-term recovery in the residential property market in Dubai," said Sajeer Babu, an equity analyst at National Bank of Abu Dhabi, which participated in the March 2 to 12 poll.
"With about 80,000 units in the pipeline for the next two years, negative population growth and banks unable to lend, the 2008 price peak is not likely to be revisited for a long time," said Roy Cherry, Shuaa Capital's Vice-President of Research.
Dubai property prices had soared sharply after the emirate opened its real estate sector to foreign investors in 2002. From the beginning of 2007 to mid-2008, property prices soared almost 80 per cent, according to Morgan Stanley estimates.
As buying properties became expensive, Dubai's mainly expatriate population opted to rent instead, causing prices to spiral upwards. Rents could retreat 32.5 per cent this year and five per cent in 2010, according to poll responses.
Analysts said Dubai needed to clarify employment and residency rights of expat property owners.
The findings of propertyfinder.ae are based on approximately 500,000 page visits to the website during February and highlights ongoing activity in the Dubai real estate market despite the economic downturn.
Commenting on the survey results, Marcello Sambartolo, Head of Marketing at propertyfinder.ae, said: "This survey has revealed some really interesting statistics. We are seeing a real shift in rental interest towards new residential areas such as Discovery Gardens and Jumeirah Lake Towers where rents are more competitive. There is still interest from end-users looking to invest in Dubai, which is now offering opportunities to capitalise on the recent drop in house prices."
RECOVERY FROM 2011
Dubai residential real estate prices will start recovering from 2011, according to a Reuters poll. Prices would probably bottom out after 2010, with seven of nine forecasters saying the cost of real estate would hit a trough next year or later.
"We do not see any near-term recovery in the residential property market in Dubai," said Sajeer Babu, an equity analyst at National Bank of Abu Dhabi, which participated in the March 2 to 12 poll.
"With about 80,000 units in the pipeline for the next two years, negative population growth and banks unable to lend, the 2008 price peak is not likely to be revisited for a long time," said Roy Cherry, Shuaa Capital's Vice-President of Research.
Dubai property prices had soared sharply after the emirate opened its real estate sector to foreign investors in 2002. From the beginning of 2007 to mid-2008, property prices soared almost 80 per cent, according to Morgan Stanley estimates.
As buying properties became expensive, Dubai's mainly expatriate population opted to rent instead, causing prices to spiral upwards. Rents could retreat 32.5 per cent this year and five per cent in 2010, according to poll responses.
Analysts said Dubai needed to clarify employment and residency rights of expat property owners.
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