The price of villas in Dubai increased by 8% in the third quarter of 2009 and values are expected to remain stable in the short term, according to the latest real estate figures to be published.
Villas accounted for 60% of residential sales, according to a new report from Landmark Advisory. It also predicts that villa supply and current sales inventories will remain relatively stable.
‘If investor confidence and inventories are stabilising, then we may have possibly reached a price floor for villas,’ said Jesse Downs, director of Research and Advisory Services at the company.
The report also found that apartment prices fell 3% in the same period but the rate of decline is slowing considerably compared with a 17% fall in the second quarter of the year.
‘Apartment inventories remain stable with the majority of sellers holding prices and because many distressed sales that were available over the past three to six months no longer available,’ explained Downs.
Finance is still a clear issue for property investors. In Dubai apartment demand gravitates toward more affordable units but financing appears to be an issue, with financed apartment sales declining to 14% in the third quarter, the report shows.
Leasing rates for villas in Dubai increased 6% in the third quarter, in line with sales trends. ‘This is due to considerable demand during the summer months, primarily from relocation within the UAE, but also from a limited amount of new demand from expatriates moving from abroad,’ said Downs.
And the long term outlook for the property market in Dubai is good according to a report from UK property bro ker Chesterton. It is predict ing that prices will grow at an average of 4 to 6% annually until 2015.
Chesterton, which has offices in Abu Dhabi, Libya, Singapore and Gibraltar, said, however, that the meteoric rises in value seen during the emirate’s six year property boom are now firmly in the past.