Dubai property sales fall

Thursday, 16 July 2009 08:28

Dubai property sales fall by more than 40%

Analysts and property brokers believe that prices have started to stabilise in Dubai during June and July. Property sales in Dubai declined in the first half of this year by more than 40% compared with the same period last year.

The National newspaper reported that there were 1,724 sales in the first half of 2009, which is 42.6% percent lower over the same period of six months during 2008, according to the website REIDIN.com. REIDIN.com charts property prices using data from the Dubai Land Department.

In June Deutsche Bank produced a report indicating that Dubai property prices and rents recovered slightly during that month. The bank concluded this meant that the worst for the property sector may be over.

Deutsche Bank stated that the figures quoted in its proprietary price index, which covers 13 locations in Dubai, demonstrated that the average house price for apartments and villas rose 6.5% in June to AED1,285 ($349.9) per square foot. Rents rose 1.1% over the same period following a 10% fall. However, apparently more than 60% of people think UAE property prices are going to drop by another 20-30% this year, according to an online poll.

A recent poll in a local newspaper in the UAE I indicated that just five per cent of people in Dubai thought the real estate market had hit the bottom. Some 63.4% of people thought there was still another 20-30% correction to come.

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