The Dubai property market has experienced a major set-back with prices having dropped up to 40%.
Arabian Business reported that Standard Chartered bank anticipates that Dubai’s property market will probably decline more in the coming months and these market changes should be embraced as they suggest that Dubai is one step closer to attaining a stabilized market.
“There is tremendous infrastructure in Dubai. People forget the fundamentals during a recession. Property will never attain the very high prices that were registered earlier,” stated Hesham El Far, CEO of Coldwell Banker UAE.
People have to bear in mind the reality of the market situation. El Far further stated, “Projects where investors have paid around 40-50 per cent of the unit value are likely to continue. Other developments where investors have paid only 10-15 per cent of the price are unlikely to go ahead.”
CB Richard Ellis conducted a survey last year where the office price in Dubai ranked 7th worldwide, more than London, New York, Singapore and Paris. Thus to stay in competition with the global market, Dubai should ideally not return to its initial real estate pricing model as stated in a report by Standard Chartered and many analysts believe it will never be the same.
Now key real estate stakeholders, financial institutions and economists are waiting till the end of 2009 to deduce a concrete understand of the market trends and forecast for 2010. All in all, the UAE economy is facing challenging times with low credit supply and property prices fluctuating. Even though the conclusion on the current status of the Dubai property market remains unclear, people may leave to their home countries but once a steady trend is observed, influx of residents is a given considering the overall attractive opportunities and lifestyle this city offers.