Dubai heading for property market stabilization

Property-MarketEmirates property market that witnessed so many ups and downs in the past quarters has heading for stability with rationalization in prices and property sales.

The latest review of the property segment by HC Securities claimed that prices surged by two or one percent in recent months, indicating changing conditions across the segment. The report added, "The turnaround in November 2009 following none months of successive declines suggests the market is reaching equilibrium."

However, the report cautioned against changing scenario in the backdrop of the restructuring of Nakheel that could add delay in some ongoing projects.

Meanwhile, another report by Asteco claims 24 per cent decline in apartment rates and 18 per cent for villas in 2009 on average basis. Palm Jumeirah witnessed 6 per cent decline in apartment rentals while International City saw around 15 per cent decline since the first quarter of 2009.

Property services company Asteco further reported rise in transactional activities and improvement in mortgages. Downtown Burj Dubai, Dubai Marina, Jumeirah Beach Residence, Springs and Arabian Ranches are still attracting buyers because of retail, leisure, education and entertainment facility they have been providing.

The report added, "Compared with Q3 2009, the decline in rental rates slowed in the last quarter with overall decreases of two per cent for apartments and one per cent for villas."