Dubai house prices rise for first time since crisis
Dubai, May 9, 2010
Dubai house prices climbed 2 percent year-on-year in the first quarter, their first annual rise since the 2008 financial downturn, but oversupply would pressure prices going forward, Colliers International said on Sunday.
Prices in the emirate, home to the world's tallest building, rose 4 percent in the first quarter from the previous quarter. That marked the third consecutive quarterly rise, Colliers said, in a sign that the property market is stabilising.
House prices in Dubai have slumped some 55 percent since their peaks in the third quarter of 2008.
"There will be significant oversupply in the market by the end of the year so it is anticipated the index will experience fluctuations going forward," said Ian Albert, the firm's regional director, referring to its house price index.
"What will be important to watch is how much of the supply matches the end-user demand for community-oriented developments," he added.
Colliers International estimates that 41,000 homes will enter the market by the end of 2010, mostly in the low to mid-income segments.
It said that while demand is not expected to match the supply growth, it remained unclear whether future supply will have a negative impact on established projects, which are typically more resilient to market conditions.
Albert added that while banks are starting to lend again, it was unlikely that all of the supply would meet new and stricter lending criteria.
Apartment prices in Dubai rose 6 percent in the first quarter from the previous quarter, villa prices climbed 2 percent while townhouse prices fell 4 percent, the index showed.
House prices and rents are set to fall 10 percent more in 2010 and not recover until 2012, a Reuters poll showed in April. - Reuters
More Construction & Real Estate Stories
- Work to start on Bahrain beach project
- Damac launches luxury apartments at Expo site
- Kuwaitis top GCC property buyers in Oman
- Rubber World to showcase at Big 5 Saudi
- Tool to help create effective property listings
- 'Smart' move by Dubai Design District
- Drake unit wins $13m contract in India
- Solar-powered cleaning boats launched in Sharjah
- $27m Expo Hotel Sharjah deal signed
- Arabtec unit wins $282m Emaar contract
- Abu Dhabi to host pool & spa expo
- ADCM unit secures $213m bridging loan
- Cluttons Dubai launches new luxury apartments
- Dubai developer Damac profits triple to $641m
- Dubai to start work on $544m water canal
- Dubai property market can absorb 25,000 units
- Jones Lang LaSalle renamed 'JLL'
- Aldar raises synergy estimate from Sorouh merger
- UAE industrial property sector keeps up growth
- Dubai residential property prices up 26pc
- Majid Al Futtaim to build new mall in Dubai IMPZ
- 300 firms to take part in Dubai property forum
- Naseej inks deal to develop Bahrain projects
- Dadabhai unveils new residential project
- Flowcrete completes Dubai Mall project
- Global asphalt demand hits new high
- $1.3bn infrastructure investment firm set up in Saudi
- Manara sees big project villa success
- Global giants eye RAK utility projects
- Cayan partners with international artist Zsuzsanna