Arab Today, arab today sizzling dubai property prices cools
Last Updated : GMT 22:04:34
Arab Today, arab today
Arab Today, arab today

Healthy levels after a 2-year rally

Sizzling Dubai property prices cools

Arab Today, arab today

Arab Today, arab today Sizzling Dubai property prices cools

Scale model of the Mall of the World
Abu Dhabi - Arab Today

Dubai property prices are cooling to "healthy" levels after a two-year rally during which real estate rebounded from a slump when the global financial crisis hit in 2009.
Developers at a property show have rolled out scale models of latest projects, including Mall of the World, a larger-than-life venture announced in July complete with temperature-controlled high streets, a theme park, hotels and a theatre.
Also on display at the Cityscape show on Sunday were models of mansions for sale at a price of more than $25 million apiece.
Dubai property prices have been on a roller coaster over the past 10 years.
The market began expanding when it was opened to foreigners in 2002 and peaked at record highs in 2008, driven mainly by speculative investments.
Prices took a nosedive in 2009 as finances dried up in the global financial crisis, shedding half the value of the sector.
But a revival in demand propped up values and rents at breakneck speed, stirring fears of another bubble.  
Data shows that sale prices surged by 56 percent and rents by 41 percent since August 2012, according to Dana Salbak, senior research analyst at Jones Lang LaSalle (JLL).
"We realise that this was very unsustainable," she said on the sidelines of the annual property show, pointing out a "welcome levelling off" in sale prices and rents in the residential sector in the third quarter of 2014.  
"We see the residential market stabilising. This is a healthy and sustainable level. We welcome prices and rents as they are," she added.
A JLL report put growth in sale prices and rents in the third quarter at just two percent and one percent, respectively.
Knight Frank real estate consultancy also noted that prices and rents have cooled down.
"The growth rate has been weakening," after having entered positive territory in mid-2011, the agency said in an autumn report.
It said a government decision to double transfer fees and a central bank cap on mortgage funding, introduced in the last quarter of 2013, were behind the slowdown.
"The government has played a major role in curbing speculation," said Salbak.
- Developers learn lesson -
In the pre-crisis period, Dubai developers built grandiose projects, turning swathes of the emirate's desert into urban neighbourhoods and business centres.
A combination of investor appetite and available finance led at the time to the launch of scores of projects at the same time, mostly sold off-plan.
It all came to a shreiking halt when investors vanished along with a drying international finance triggered by the crisis. Many projects were cancelled or put on hold.
Developers have learnt a lesson, despite the larger-than-life projects on display at Cityscape, according to Salbak.
"They are phasing out their projects in a longer timeframe and they are trying to secure more resources for funding, instead of relying on off-plan sales," she said.
Mohammed al-Habbai, head of urban planning and infrastructure at Dubai Properties Group, which built several landmark projects, spoke of a change in attitude on the part of developers.   
"The market is driven by the end user. Whatever we build, we build it for the end user," he said, hailing a "more mature" governance of the sector.
"There is a huge demand for the real estate market," he said, adding that interest in property is coming from "all over the world."
Indians top the list of foreign investors, pumping 10.2 billion dirhams ($2.8 billion) into the sector in the first half of 2014, according to Knight Frank.
They came second only to UAE nationals who purchased property worth 12.6 billion dirhams during the same period.
British and Pakistani investors spent 5.8 billion dirhams and 4.5 billion dirhams, respectively, while Saudis bought property worth 3.4 billion dirhams.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today sizzling dubai property prices cools Arab Today, arab today sizzling dubai property prices cools

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Hamas leader accuses Israel

GMT 11:43 2017 Tuesday ,28 March

Hamas leader accuses Israel
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people

GMT 06:23 2017 Thursday ,23 March

Diplomat denies any formal decisions

GMT 12:21 2017 Wednesday ,22 March

Economic expert call Tunisian government

GMT 19:15 2017 Tuesday ,21 March

EFB ranks first in world food banks

GMT 14:47 2017 Tuesday ,21 March

Minister stresses his country's aspiration

GMT 20:24 2017 Monday ,20 March

MP reveals details of British delegation's visit

GMT 16:14 2017 Saturday ,18 March

Egyptian professor calls to get rid of corruption
View News in Arabic - Business: أخبار الاقتصاد
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 13:21 2017 Tuesday ,28 March

Samsung plans to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday