Property market starting to stabilise

[LRE]

Property market starting to stabilise

By Suzanne Fenton, Staff Reporter
Published: August 16, 2009, 23:01


Dubai: Signs of stability are becoming apparent in Dubai's property market with the volume of transactions remaining consistent in the first half of 2009, according to the latest industry report compiled by Jones Lang LaSalle.

Transactional volume remained stable between the first and second quarters, in the comparison of this year's second quarter as opposed to the previous year's quarter - heralding a return to stability and confidence.

"The stabilisation of transactional volumes is an important indicator which reflects improved confidence among investors.

"The narrowing gap between asking and achieved prices is a further indication that the market is beginning to stabilise albeit at significantly lower levels of pricing than those seen earlier in the year," said Craig Plumb, head of research at Jones Lang LaSalle Mena division.

According to the report the rate of decline is now slowing. This has meant that there is less of a gap between the asking prices and achieved prices.

New residential supply also continues to come onstream, with 22,400 residential units still expected to be handed over this year.

In terms of rental, rates have eased by an average of 35 per cent since the last quarter of 2008 and have fallen around 18 per cent since the first quarter 2009.

Analysts say that the levels of decline had slowed d significantly when compared with the first quarter.


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