The future belongs to the developers who can market and sell to the end user
Leasing activity in Dubai will accelerate as sellers adapt to shifting demand patterns that signal the transition to an end-user driven buyers’ market. Dubai’s real estate market is resilient and will withstand the current economic turmoil without experiencing the over-supply problems alluded to in media reports.
The emergent supply-demand dynamic will increase the number of sellers willing to lease to end-users. Likewise, end-users will purchase units and lease them to generate income against their mortgages. Lenders are therefore likely to further stimulate the leasing market by launching new and dynamic buy-to-let mortgage products tailored for end-users.
Despite dramatic growth in 2008, Dubai’s property prices are still below those of comparable markets in cities such as New York, London and Hong Kong.
Even if some projects get delayed or restructured in the short-term as developers adapt to current challenges, professionals are optimistic about the market’s strength and growth potential.
Emirates Business, November 06, 2008
Syndication : RIBH
Property prices on Palm Jebel Ali fall by up to 40%
Investors in off-plan properties on the Palm Jebel Ali have been forced to reduce prices to find a buyer, agents say. House prices on the Palm Jebel Ali, second largest of Nakheel’s palm-shaped islands, have fallen by as much as 40 percent in the last two months as the global financial crisis sees foreign investors move to liquidate assets in Dubai, according to Dubai-based real estate agents. Nevertheless the current selling prices still represents a premium of between 70 percent to 80 percent on the original launch prices. Market professionals see the long-term picture as good and expect prices to go back up. Sales have already started to pick up, with investors taking advantage of bargain prices to snap up properties that just a few months ago were out of their price range.