According to Jones Lang LaSalle (JLL) Dubai’s property market will not recover before 2011 due to over supply and lack of finance. Do you think there is any kind of possibility for Dubai to recover completely before that probably in the last Quarter of 2010?
Jones Lang LaSalle (JLL) must have reached its conclusion with calculations. Quantitative judgments are difficult to predict accurately. Subjective & qualitative changes in Dubai's real estate market are obvious with the rising optimism in the market and reviving consumer's confidence, though recovery is slow but persistent. I think the crisis is a bit much deeper to get the real estate recovered in that short period of time. However, if you compare recovery of Dubai with the other world economies you will find them amongst the ones, leading the process of recovery.
Oversupply has been a problem with unplanned developments but in my opinion, that can't overshadow a lot of other trade & commerce activities going on in Dubai for too long.
As per my information, Dubai Residential Property seems to suffer due to over supply and lack of finance and I am agreed to it little bit due to market conditions nowadays. According to a recent survey, done for Dubai Real Estate, it reveals the fact that there are several potential buyers in the market as compared to sellers because there is lack of such offers that can be sold at attractive prices. The greatest declines are witnessed in luxury residences like Villas, whereas apartment prices show a bit of stability as compared to luxury resorts.
Dubai's Office market is suffering from supply overhang and it seems to continue because projects were halted and the sellers were not having worthy offers.
Experts are not sure about the future of Dubai Real Estate Market therefore the announcement of Debt Restructuring Plan for Dubai remained unable to create confidence in investors and there is still much uncertainty about the Real Estate Market across the region. Thus we cannot say surely that Dubai Real Estate Market will recover in 2010 or the same trend will continue in 2011.
We can't say anything about the recovering period of Dubai property.
According to the latest news I have read, Dubai is increasing its residential stock up to 33000 by 2011. Which indicates that the value of residential property transactions in Dubai did rise during the second quarter of 2010.
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