Property prices in UAE have dramatically dropped lately. Similarly, it is anticipated that Dubai property prices will counter further decline in upcoming months. It’s unpredictable but any ideas when the prices are going to be stabilize?
A lot of people are asking the same question nowadays, please refer to other similar posts as well.
I believe the market is very unpredictable right now as a lot of people were expecting that the market will start picking up again from September onwards, however now the opinion has changed to December or early part of next year.
All we can do is wait patiently and hope for the best. As soon as the western world is out of recession its bound to have some positive effect on the real estate market worldwide.
If prices are to stabilse, confidence must first return to the property market and that hasn't yet happened. It is true that certain developments have recently shown price increases but there is no guarantee that these will be sustained.
The Dubai government will do all it can to aid recovery because it has no Plan B. The future strategy of Dubai is underpinned by a healthy property market so they have no choice and that is good news. If Dubai suffers long term so will Abu Dhabi and they won't let hat happen.
At the moment it is Ramadan so nothing will really happen until the end of Sept and my guess is that we will have a better idea of the health of the market by the end of March 2010. From what I know, the worst is over but we are definitely not in recovery yet.
A further fall in property prices is expected, in the range of 15% to 25 % from here on an average, is possible for different sectors mainly due to the forthcoming supply from past projects. However, the fall will not be as dramatic as in the previous two quarters as the contraction in demand will be much more muted than the past as the probability of a dramatic fall in economic activity is less from the last year.
Well recent financial crisis is because of inappropriate property plans offered in U.S. Many of you aware of sub-prime mortgage scheme, this scheme fueled the recent financial crisis. It is a scheme in which banks provide the loan to the customers with very low or no condition for property. Now come to the point, according to a survey the crisis all over the world will be end up in the mid of the year 2010 and Dubai is the part of this world, so it is expected that prices of property will be adjust when the present crisis will shut down.
This is the time to invest either it a property business or any other field, rewards will be awarded in the mid of next year hopefully...
(6 Answers)
