Realty prices projected to stabilise in 2010

Article in Emirates Business 24-7

Article in Emirates Business 24-7

Residential real estate prices are likely to stabilise in 2010, with buyers investing for the long term, according to real estate agents.

At the same time rents in Dubai’s commercial sector have stabilised over the past three months. While office rents in the emirate had been falling since late last year, the rentals have stabilised of late, revealed Better Homes data, shared exclusively with Emirates Business.

“Prices across villas and apartments will stabilise in 2010. Moreover, buyers investing in residences in Dubai will enter on a long-term basis, indicating a less speculative interest in the emirate for next year,” said Mohanad Alwadiya, Managing Director, Harbor Real Estate.

Just ahead of the new year, Emirates Business picked 12 residential projects in Dubai that received interest from potential property owners and tenants in the past 12 months.

Some of these projects saw increased sales and rental transactions, while some projects, such as Burj Dubai by Emaar Properties and the Villa Project in Dubailand by Al Mazaya Real Estate, are gathering a lot of interest just ahead of their handover.

Analysts attributed the stabilisation of rents to an improved economic environment, which has led to a slowdown in the restructuring exercises of local companies.

“The pace at which companies were restructuring and consolidating their plans to cut down their staff and give away additional space during the first half of the year have reduced over the past few months keeping the vacancy level of the office space stable to 25 per cent in the region,” said Porush Jhunjhunwala, Manager, Commercial Leasing at Better Homes.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s